Applied Materials gains as UBS turns bullish

Shares of chip equipment maker Applied Materials AMAT.O up 3.3% premarket to $238.53 after UBS upgrades to 'buy' from 'neutral'

Brokerage boosts PT by $35 to $285, implying 23% upside to stock's last close

UBS points to its "significantly more bullish" outlook for wafer fab equipment (WFE) spending in 2026 and 2027

Revised forecast calls for WFE spending to increase more than 20% yr/yr to $136.5 bln, driven primarily by memory, UBS says, adding "AMAT stands out as the largest beneficiary of this DRAM spending surge"

UBS expects co's 2027 EPS of $13, compared to the Street at $11.56, "which we believe supports a substantially higher share price"

Earlier this month, AMAT said it sees weaker China spending in 2026 on tighter US curbs, with overall rev projected to be stronger in second half of the year

Of 34 brokerages covering AMAT, recommendation breakdown is 22 "strong buy" or "buy", 11 "hold" and 1 "sell"; median PT is $250, per LSEG data

Through Mon close, shares up 42% YTD vs Nasdaq's .IXIC 18% advance