DRAM business resilience exceeds expectations! Morgan Stanley is bullish on Applied Materials' (AMAT.US) long-term growth potential and maintains a $563 price target.

Zhitong Finance APP has learned that Morgan Stanley, after attending Applied Materials' (AMAT.US) recent investor breakfast meeting and EPIC R&D center open event, stated that it has greater confidence in the company's long-term development strategy and competitive position. The bank believes that Applied Materials' performance in the DRAM equipment market has been better than expected, and its front-end process control business has also shown strong growth momentum. The long-term targets proposed by management are achievable, and if the semiconductor equipment market develops in line with the company's expectations, there may even be room for upward revision in the future. However, considering the market share pressure in the advanced logic process segment and the fact that it remains to be verified whether the new R&D center can be translated into sustained competitive advantage, Morgan Stanley maintained its "Hold" rating on Applied Materials and a target price of $563. Based on the closing price of $413.11 on October 19, the potential upside is approximately 36.3%.