5 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 138

On June 4, Evercore ISI analyst Mark Lipacis reiterated a Buy rating on Applied Materials Inc. (NASDAQ:AMAT) and also assigned a target price of $515 to the stock. In addition to Evercore, two different analysts reaffirmed their Buy ratings on the stock in the first week of June. This includes TD Cowen and Bernstein, with Bernstein having the highest price target on the stock of $525.

Earlier, on May 15, Deutsche Bank increased its price target on Applied Materials, Inc. (NASDAQ:AMAT) from $450 to $550 and maintained a Buy rating. The firm’s revised rice target implies an additional 10% upside from the current levels. The price target revision came after the company delivered strong results and provided a bullish outlook. Deutsche Bank now expects Applied Materials’ semiconductor business to grow by more than 30% year-over-year in 2026. The outlook points to growth ahead of prior expectations.

The positive analyst sentiment followed the company’s Q2 2026 earnings report on May 14. Applied Materials Inc. (NASDAQ:AMAT) reported revenue of $7.91 billion, which was up by 11% year over year. The earnings per share came in at $2.86, which comfortably beat the Wall Street consensus of $2.68.

Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.

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