TD Cowen Reiterates Buy Rating on Applied Materials (AMAT) Stock

Applied Materials, Inc. (NASDAQ:AMAT) is one of the 10 Best Semiconductor Stocks to Buy Right Now. On August 22, TD Cowen reiterated its Buy rating on the company’s stock with a price objective of $200.00. The analysis comes during what it believes is an interesting earnings season for semicaps. The firm demonstrated confidence in Applied Materials, Inc. (NASDAQ:AMAT)’s market share position, noting that while investors can require more confidence, TD Cowen remains optimistic about the market share and stock set-up.

Furthermore, Applied Materials, Inc. (NASDAQ:AMAT) posted strong performance in its Q3 2025, and remains on track to deliver its 6^th consecutive year of revenue growth in FY 2025. The company continues to navigate and adapt to the near-term uncertainties through its strong supply chain, global manufacturing footprint, as well as deep customer relationships. In Q3 2025, Applied Materials, Inc. (NASDAQ:AMAT) saw record revenue of $7.30 billion, up 8% YoY. For Q4 2025, it expects total net revenue of $6,700 million (+/- $500 million).

Matrix Asset Advisors, an asset management company, released its Q2 2025 investor letter. Here is what the fund said:

“We started a new position in Applied Materials, Inc. (NASDAQ:AMAT), a global supplier of equipment used in the fabrication of semiconductors. Surging demand for advanced chips that fuel Artificial Intelligence (AI), and high performance computing is driving a significant investment in semiconductor manufacturing equipment. AMAT is well positioned to capitalize on this trend. The company has a track record of strong performance, consistently generating significant cash flow from operations, allowing it to invest in R&D and return value to shareholders through buybacks and dividends. This is an example of a company that we had previously done the work on hoping for an opportunity to add it to the LCV portfolio on price weakness. We started our position after the April 2nd reciprocal tariff announcements caused a sharp, short-lived market pullback.”

While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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