10 Must-Buy Semiconductor Stocks to Invest In

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

Number of Hedge Fund Holders: 83

Applied Materials, Inc. (NASDAQ:AMAT) is one of the must-buy semiconductor stocks to invest in. Applied Materials (NASDAQ: AMAT) received an upward revision from Needham, which raised its price target on the stock to $240 from $195 while maintaining a Buy rating. Based on the current share price of $188.20, the new target suggests an implied upside of roughly 28%, signaling renewed confidence in the company’s positioning as demand trends stabilize across the semiconductor equipment landscape.

The adjustment comes amid growing visibility into wafer fab equipment (WFE) spending, which appears to be recovering after a challenging downcycle. Needham’s move reflects a view that Applied’s backlog strength and exposure to leading-edge logic and memory customers place it in a favorable position as capital spending resumes, particularly in the U.S. and Asia. The company’s role in enabling advanced process nodes, especially in AI and high-performance computing applications, is seen as a differentiator.

Applied Materials has also benefited from increased government and private investment into domestic chip manufacturing, an area expected to drive longer-term upside. With margins holding steady and order activity improving, the firm believes current levels offer an attractive entry point. As one of the few players with end-to-end scale in semiconductor fabrication tools, Applied remains well aligned with both near-term demand normalization and multi-year strategic shifts in global chip production.