Applied Materials (AMAT) Seen Winning Whether WFE Growth Is Market- or Share-Driven

Applied Materials (NASDAQ:AMAT) is one of the AI Stocks to Watch. Applied Materials (NASDAQ:AMAT) is gaining renewed interest from Wall Street as analysts view the stock as well-positioned toward growth whether the market is market-driven or share-driven. On February 13, TD Cowen analyst Krish Sankar raised the price target on Applied Materials (NASDAQ: AMAT) to $450.00 (from $315.00) while reiterating its “Buy” rating.

The research firm believes that AMAT is poised to benefit from stronger semiconductor equipment demand in C26. In particular, it noted over 20% system growth for both AMAT and Lam Research, which is above ASML and KLAC.

Applied Materials (AMAT) Seen Winning Whether WFE Growth Is Market- or Share-Driven

With AMAT and LRCX together representing roughly 30% of global wafer fabrication equipment (WFE), the key question is whether it is the overall WFE market that will grow 20% or share gains will be driven by rising deposition and etch intensity from DRAM node complexity and GAA foundry transition.

Either way, see AMAT as well positioned to benefit. PT to $450.

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 potential of AMAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMAT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.