5 Best Stocks to Buy for the Second Half of 2026

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

Number of Hedge Fund Holders: 138

Year-to-date return: 142.09%

On June 30, Susquehanna analyst Mehdi Hosseini bumped up his target on Applied Materials, Inc. (NASDAQ:AMAT) to $900 from $575. The analyst maintained a “Positive” rating on the shares. In an investor note, he noted channel checks that suggested an expanding SCE backlog extending beyond one year. WFE is reaching as high as $300 billion and higher in 2026 and 2027 estimates, along with new 2028 projections.

Separately, on June 16, Reuters reported that Applied Materials, Inc. (NASDAQ:AMAT) signed a long-term agreement with EssilorLuxottica to develop augmented reality display technology and AI glasses.

Reuters said the companies plan to scale commercialization as well as focus research on advanced optical technologies.

Reuters also reported that EssilorLuxottica already sells artificial intelligence glasses with Meta under the Ray-Ban and Oakley brands. Applied Materials, Inc. (NASDAQ:AMAT) supplies the semiconductor manufacturing equipment needed to produce the ultra-thin chip 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.