5 Best AI Stocks to Buy and Hold for the Next 5 Years

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

Number of Hedge Fund Holders: 138

On July 6, Morgan Stanley bumped up its price target on Applied Materials, Inc. (NASDAQ:AMAT)  to $647 from $502. The firm maintained an “Equal Weight” rating on the shares.

On June 16, Reuters reported that Applied Materials, Inc. (NASDAQ:AMAT) signed a long-term agreement with EssilorLuxottica to make augmented reality display technology and artificial intelligence glasses. The companies said they will focus research and development on advanced optical technologies and scale marketing of AI glasses.

Reuters noted that EssilorLuxottica already leads the artificial intelligence glasses market through its long-term partnership with Meta, selling smart glasses under the Ray Ban and Oakley brands. In 2025, it launched its first display-equipped device, the Ray Ban Meta Display.

The report said that artificial intelligence-powered glasses have cameras, microphones, speakers, and voice assistants in conventional frames. Moreover, augmented reality presents greater optical challenges.

Reuters also said Applied Materials, Inc. (NASDAQ:AMAT) manufactures the specialized semiconductor equipment needed to produce the ultra-thin material layers used in AR displays.

Applied Materials, Inc. (NASDAQ:AMAT) is a firm that provides materials engineering solutions used in semiconductor manufacturing. Its segments include Semiconductor Systems and Applied Global Services.