Needham Boosts Applied Materials (AMAT) Target on Strengthening Semiconductor Equipment Demand

Applied Materials, Inc. (NASDAQ:AMAT) is one of the must-buy semiconductor stocks to invest in. Applied Materials (NASDAQ:AMAT) received an upward revision from Needham, which raised its price target on the stock to $240 from $195 while maintaining a Buy rating. Based on the current share price of $188.20, the new target suggests an implied upside of roughly 28%, signaling renewed confidence in the company’s positioning as demand trends stabilize across the semiconductor equipment landscape.

A technician in a pristine lab, focused on designing a new semiconductor chip.

The adjustment comes amid growing visibility into wafer fab equipment (WFE) spending, which appears to be recovering after a challenging downcycle. Needham’s move reflects a view that Applied’s backlog strength and exposure to leading-edge logic and memory customers place it in a favorable position as capital spending resumes, particularly in the U.S. and Asia. The company’s role in enabling advanced process nodes, especially in AI and high-performance computing applications, is seen as a differentiator.

Applied Materials has also benefited from increased government and private investment into domestic chip manufacturing, an area expected to drive longer-term upside. With margins holding steady and order activity improving, the firm believes current levels offer an attractive entry point. As one of the few players with end-to-end scale in semiconductor fabrication tools, Applied remains well aligned with both near-term demand normalization and multi-year strategic shifts in global chip production.

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Disclosure: None.