12 Best Stocks to Buy and Hold for the Long Term

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

Number of Hedge Fund Holders: 83

Applied Materials, Inc. (NASDAQ:AMAT) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 16, Shane Brett CFA from Morgan Stanley maintained a Hold rating on Applied Materials, Inc. (NASDAQ:AMAT) with a price target of $158. The cautious rating is based on a mixed outlook on Taiwan Semiconductor Manufacturing (NYSE:TSM) and DRAM growth.

Shane Brett noted Applied Materials, Inc. (NASDAQ:AMAT)’s DRAM revenue is expected to drop 12% in fiscal 2026. On the other hand, some analysts remain optimistic about the company driven by new technologies like Gate-All-Around (GAA) transistors and backside power delivery. The outlook regarding the company’s valuation also presented variation, with some analysts believing the company’s semiconductor equipment business (SPE) deserves higher trading multiple due to its growth prospects. On the other hand, some think current valuations are considerably elevated. Due to this mixed outlook around Applied Materials, Inc. (NASDAQ:AMAT), Brett maintained a Hold rating on the stock.

During the fiscal second quarter of 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported a revenue of $7.1 billion, reflecting a 7% increase year-over-year. The growth was driven by solid performance across the board. Notably, the gross margins improved 170 basis points to 49.2% reflecting the highest quarterly margins since FQ4 2000. Looking ahead, management anticipates slight year-over-year growth with revenue between $7.15 billion and $7.25 billion.