5 Best Stocks to Buy Now for High Returns

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

EPS Growth Next Year: 36.40%

Number of Hedge Fund Holders: 138

Applied Materials, Inc. (NASDAQ:AMAT) has gained more than 18% over the past month, mainly due to strong demand commentary. Analysts project the company to grow its EPS by more than 36% over the next year. Applied Materials, Inc. (NASDAQ:AMAT) is also among our Best Stocks to Buy Now for High Returns.

​Recently, on July 9, Mizuho raised the firm’s price target from $540 to $650 and maintained an Outperform rating on the shares. The firm noted that the wafer fab equipment earnings estimates are supported by strong demand driven by AI. The firm also expects advancements in edge logic and memory chips, which will act as a tailwind.

​Mizuho noted improving price targets across the semiconductor equipment companies as it sees AI driving demand for DRAM and NAND.

​Similarly, on the same day, TD Cowen also raised the price target on AMAT from $525 to $700, while maintaining a Buy rating on the shares. The firm expects  wafer fab equipment spending to reach $250 billion in 2028, with the potential to climb to $400 billion by 2030, based on industry EBITDA trends. TD Cowen also highlighted the memory sector, noting fab return on investment now stands at more than three times better than prior cycles.

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.