5 Stocks with Best Earnings Growth for the Next 3 Years

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

Number of Hedge Fund Holders: 138

On June 15, Applied Materials, Inc. (NASDAQ:AMAT) unveiled two new chipmaking systems to address a new challenge in leading-edge semiconductor manufacturing. The systems will not only help achieve precision processing in deep and narrow 3D structures, but will also expand scaling in logic and memory.

With AI computing on the rise, the market has shifted towards advanced 3D device architectures. This includes gate-all-around transistors and high-layer-count 3D NAND. The conventional deposition and etch processes lack the ability to distribute materials evenly as features become deeper and narrower in vertical structures. This is where the company’s newly launched systems come in.

As said by Dr. Prabu Raja, President of the Semiconductor Products Group,

“With our latest deposition and selective etch systems, we are delivering differentiated capabilities that help customers overcome critical scaling barriers and accelerate the next wave of innovation in logic and memory.”

Despite its 1-year downside potential based on the median price target, Applied Materials, Inc. (NASDAQ:AMAT) has a solid quarterly earnings growth (YoY) of 31.30%. The company has continuously outperformed the S&P 500 over the past five years. This reinforces its position among the stocks with the best earnings growth for the next 3 years.

Applied Materials, Inc. (NASDAQ:AMAT) is a California-based provider of materials engineering solutions, equipment, services, and software. Founded in 1967, the company operates through Semiconductor Systems and Applied Global Services segments.