BofA and Wells Fargo Lift AMAT Price Targets as Applied Materials Joins Russell Top 50

Applied Materials, Inc. (NASDAQ: AMAT) received price target increases from two Wall Street firms last week while being reclassified into the Russell Top 50 Index, a move that index providers tied to recent product developments in AI-oriented semiconductor manufacturing. The stock fell 6.16% on Friday, June 26, 2026, closing at $626.84.

Analyst Actions and Index Reclassification

• BofA raised its price objective on AMAT to $720 from $540 on June 23, maintaining a Buy rating, after updating its semiconductor industry models and price objectives.
• Wells Fargo raised its price recommendation to $740 from $715 on June 26, reiterating an Overweight rating; the firm said Applied Materials' Memory and AP Master Class reinforced its positive view on the stock.
• Applied Materials was removed from several Russell Value indexes and added to the Russell Top 50 Index, according to Yahoo Finance, reflecting recent product developments in AI-oriented semiconductor manufacturing.
• The Russell Top 50 inclusion changes which funds are required to hold the stock and affects how passive capital tracks AMAT.
• The analyst consensus as of June 1, 2026 stands at 12 Strong Buy, 27 Buy, and 7 Hold, with zero Sell or Strong Sell ratings across 46 covering analysts.

Why It Matters

The removal from Russell Value indexes and addition to the Russell Top 50 signals that index providers no longer categorize Applied Materials primarily as a value holding. According to Yahoo Finance, the reclassification is tied to recent product developments in AI-oriented semiconductor manufacturing, which has altered how the company is positioned within major index frameworks. Index changes of this nature can redirect passive fund flows and shift the composition of institutional holders over time.

The two price target revisions carry notably different magnitudes. BofA's move to $720 represents a $180 increase from its prior $540 target, while Wells Fargo's adjustment to $740 from $715 is a more incremental $25 step. Wells Fargo specifically cited Applied Materials' Memory and AP Master Class event as reinforcing its constructive view, indicating that the company's direct engagement with analysts around its memory-related product capabilities contributed to the revised outlook.

Wall Street View

The broader analyst community remains firmly constructive on AMAT, with 39 Buy-equivalent ratings against 7 Holds and no Sell-side opposition as of June 1, 2026. BofA's revised target of $720 and Wells Fargo's $740 objective both sit above Friday's closing price of $626.84, implying meaningful upside in each firm's base case. The Russell Top 50 addition may attract additional index-tracking capital, according to Yahoo Finance's reporting on the mechanics of the reclassification.

Investor Takeaway

Applied Materials collected two price target increases within four days, with Wells Fargo setting the higher bar at $740 and BofA posting the larger absolute revision at $720 from $540, while the Russell Top 50 addition formalizes a shift in how passive capital will track the stock. With 39 of 46 covering analysts at a Buy-equivalent rating, the Wall Street consensus heading into the second half of 2026 remains broadly positive despite the 6.16% decline on June 26.