10 AI Stocks to Watch: Broadcom, AMD, and More

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

Number of Hedge Fund Holders: 89

Applied Materials (NASDAQ: AMAT) is gaining renewed interest from Wall Street as analysts view the stock as well-positioned toward growth whether the market is market-driven or share-driven. On February 13, TD Cowen analyst Krish Sankar raised the price target on Applied Materials (NASDAQ: AMAT) to $450.00 (from $315.00) while reiterating its “Buy” rating.

The research firm believes that AMAT is poised to benefit from stronger semiconductor equipment demand in C26. In particular, it noted over 20% system growth for both AMAT and Lam Research, which is above ASML and KLAC.

With AMAT and LRCX together representing roughly 30% of global wafer fabrication equipment (WFE), the key question is whether it is the overall WFE market that will grow 20% or share gains will be driven by rising deposition and etch intensity from DRAM node complexity and GAA foundry transition.

Either way, see AMAT as well positioned to benefit. PT to $450.

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.