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B. Riley Raises Applied Materials, Inc. (AMAT) Price Target to $400, Reaffirms Buy

Applied Materials, Inc. (NASDAQ:AMAT) is included among the 13 Best Roth IRA Stocks to Buy Now.

On February 9, B. Riley raised its price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $400 from $365. It reiterated a Buy rating on the stock. The firm said it expects strong fiscal first-quarter results, with performance likely coming in modestly above consensus estimates.

That same day, CNBC reported comments from Christopher Buchbinder of Capital Group. As lead portfolio manager of the Capital Group Dividend Value ETF, he focuses on companies with investment-grade credit ratings and a consistent record of paying income. Speaking about Applied Materials, Buchbinder made the following comment:

“We could see that there was an opportunity as the memory manufacturers would need to ramp up their investments to support the AI build out. You’re beginning to see signs of that. It hasn’t fully played out. We think this is a multi-year cycle that we’ll see develop.”

Applied Materials operates within a business model that tends to offer steadier growth. Building and expanding chip fabrication plants requires years of planning, and the equipment installed in those facilities needs ongoing servicing. That recurring service work provides an additional stream of revenue for the company.

As semiconductor production expands to meet rising demand tied to industrial automation, electric vehicles, and AI technologies, Applied Materials is positioned to grow alongside the broader industry. The company has also maintained strong operating profit margins and returns its free cash flow to shareholders through dividends and share repurchases.

Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions provider serving the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display.

While we acknowledge the potential of AMAT as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks

Disclosure. None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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