5 Tech Stocks to Buy Before Market Rally Begins

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

Number of Hedge Fund Holders: 74

Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. The company is well-positioned to gain in the second half of 2022 as the US lawmakers just approved the CHIPS Act, a legislation designed to pour hundreds of billions into the chip industry in the US to make it more competitive with China. Applied Materials, as one of the biggest such firms in the country, can thus expect a windfall of government investment in the coming months. 

On July 18, Deutsche Bank analyst Sidney Ho maintained a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock and lowered the price target to $110 from $135, noting that wafer fab equipment demand might weaken in 2023. 

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Generation Investment Management is a leading shareholder in Applied Materials, Inc. (NASDAQ:AMAT), with 4.2 million shares worth more than $560 million.