5 Most Overvalued Quantum Computing Stocks According to Short Sellers

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

Short Percentage of Shares Outstanding: 2.51%

Forward P/E: 37.54

On June 17, Citi analyst Atif Malik raised the firm’s price target on Applied Materials, Inc. (NASDAQ:AMAT) to $710 from $550 and maintained a Buy rating. Citi increased its valuation targets across the semiconductor equipment sector to reflect updated wafer fabrication equipment forecasts and a roll forward to 2028 earnings estimates. The firm remains particularly bullish on NAND equipment demand, arguing that a widening gap between memory demand and available DRAM supply should accelerate investment in complementary semiconductor technologies and manufacturing capacity.

Earlier, on June 16, EssilorLuxottica and Applied Materials, Inc. (NASDAQ:AMAT) announced a long-term joint development agreement aimed at accelerating the commercialization of next-generation intelligent optical systems for augmented reality and AI-powered smart glasses. The partnership combines EssilorLuxottica’s expertise in eyewear and optical design with Applied Materials’ capabilities in materials engineering and waveguide technology. The companies plan to collaborate on advanced waveguides, adaptive lens systems, and new materials innovations designed to enable lightweight, high-performance smart eyewear for future computing platforms.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials, Inc. (NASDAQ:AMAT) leverages its expertise in materials engineering to help drive innovation across emerging technologies, including artificial intelligence, augmented reality, advanced semiconductors, and quantum computing.