10 AI Stocks in Focus on Wall Street

8. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 81

Applied Materials, Inc. (NASDAQ:AMAT) is one of the 10 AI Stocks in Focus on Wall Street. On September 22, Morgan Stanley analyst Shane Brett upgraded the stock from Equal Weight to Overweight with a price target of $209.00 (from $172.00). The bank finds that shares of Applied Materials are compelling.

“AMAT currently trades at a 25% discount to [Lam Research] vs 10% average since 2023, and our new PT implies a 15% discount.”

The firm particularly cites AMAT’s high exposure to DRAM spending and potential benefits from new wafer additions, lifting its 2026 EPS estimate for the stock to $10.45 from $9.58 and its price target to $209 from $172.

“With a 3:1 bull:bear skew, the most leverage to greenfield DRAM in our coverage, and our view that China, ICAPS, and leading edge logic are derisked, we think risk reward is skewed to the upside.”

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.