AI Boom Fuels Bullish Analyst Outlook for Applied Materials (AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) is one of the AI Stocks in Focus This Week. On December 2, KeyBanc Capital Markets raised its price target on the stock to $285 from $240 while maintaining an “Overweight” rating. Analysts view AMAT as well-positioned ahead of key technology shifts, supported by long-term tailwinds from AI-driven demand and advanced node transitions.

“Increasing PT on Favorable Relative Positioning Ahead of Several Tech Transitions; Following internal review & analysis, we’re adjusting AMAT estimates, introducing 2028, and raising our PT to $285 from $240.”

AMAT is attractively valued than its peers, with competitors having higher embedded expectations in their current valuations. As such, the firm believes that the company will benefit from multi-year demand tailwinds “driven by power/performance hungry AI uses & devices.”

These AI demands are pushing the industry towards new technologies such as N2/GAA, HBM, Advanced packaging; all of which will benefit AMAT and similar equipment makers.

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.

While we acknowledge the risk and potential of AMAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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