10 AI Stocks on the Market’s Radar

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

Number of Hedge Fund Holders: 89

Applied Materials, Inc. (NASDAQ:AMAT) is one of the 10 AI Stocks on the Market’s Radar. On November 25, UBS upgraded the stock from Neutral to “Buy” and raised its price target to $285 from $250. Firm analysts see significant upside for AMAT driven by WFE growth and underappreciated China demand heading into 2026–2027.

UBS’s holds a bullish outlook for the WFE market in 2026 and 2027. Its forecasts call for 2026 WFE to increase more than 20% year-over-year to $136.5 billion, largely driven by memory.

It anticipates DRAM WFE to increase an estimated $13B yoy, topping previous estimates of $9B. UBS believes that AMAT stands out as the largest beneficiary of DRAM spending surge among the companies in UBS’s coverage universe.

“We now expect DRAM WFE to rise by ~$13B Y/Y (vs. our prior estimate of ~$9B), accounting for more than half of the anticipated ~$25B increase in total WFE. Looking ahead to 2027, we believe WFE approaches $145B, a level well above current Street expectations. Importantly, within our coverage universe, AMAT stands out as the largest beneficiary of this DRAM spending surge.”

The firm also believes that AMAT, as well as the broader industry, doesn’t yet fully appreciate the strength of China’s WFE demand in 2026. UBS considers this demand as another source of upside and a meaningful tailwind for AMAT.”

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.