First Manhattan Backs Applied Materials, Inc. (AMAT)'s Chip Growth Story

Applied Materials, Inc. (NASDAQ:AMAT) is among the undervalued wide moat stocks to buy now. According to the recent disclosure with the SEC, First Manhattan CO. LLC. has lifted its stake in Applied Materials, Inc. (NASDAQ:AMAT) by 7.8%. After the acquisition of 224,743 shares, the wealth management firm owns 0.38% of the company, translating to an investment of $448,221,000.

Applied Materials, Inc. (NASDAQ:AMAT) is believed to benefit from the rising demand for advanced chips and DRAM, and NAND memory structures. With the company’s impressive precision in detecting defects at the nanoscale, thanks to its Sym3 Magnum etch system and eBeam technologies, gaining a competitive edge is within reach as it expands into WFE and foundry.

While being a supplier to leading chipmakers building complex 3D systems and AI infrastructure, Applied Materials, Inc. (NASDAQ:AMAT) is definitely on the right track to sustain long-term growth. Thus, we can safely conclude that the company is in great shape, given the growth drivers AI, advanced manufacturing, and electrification.

Applied Materials, Inc. (NASDAQ:AMAT), based in California, is a provider of manufacturing equipment, services, and software to industries such as semiconductor and display. With three segments: Semiconductor Systems, Applied Global Services, and Display, the company is dedicated to creating the world’s best chips and advanced displays.

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.