Applied Materials has become one of Wall Street’s clearest ways to play the AI infrastructure buildout without buying the chip designers that dominate the headlines. The company sells the equipment needed to manufacture advanced semiconductors, and Morgan Stanley now sees a much stronger 2026 setup than it expected just a few months ago.

In a Morgan Stanley note shared with TheStreet, analysts led by Shane Brett raised their price target on Applied Materials to $502 and reiterated an overweight rating, while keeping the stock as a Top Pick in semiconductor capital equipment. The call came after Applied delivered what Morgan Stanley described as another strong “beat and raise,” with upside across several parts of the…