Wells Fargo Raises PT on Applied Materials (AMAT) Stock

Applied Materials, Inc. (NASDAQ:AMAT) is one of the Best Wide Moat Stocks to Buy Right Now. Applied Materials, Inc. (NASDAQ:AMAT) enjoys a wide moat, which stems from its broadest portfolio and healthy market share. On October 8, Wells Fargo lifted the price target on the company’s stock to $250 from $240, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, SEMICON West reinforced the positive long-term secular position of semi-cap. Furthermore, the near-term demand commentary is unchanged, with the meetings highlighting that the enthusiasm for emerging AI NAND opportunities has yet to bring in a change in near-term order trajectory.

Amidst increased uncertainty and lower visibility in the near term, Applied Materials, Inc. (NASDAQ:AMAT) remains optimistic about the longer-term growth opportunities for the broader semiconductor industry. Applied Materials, Inc. (NASDAQ:AMAT) continues to navigate and adapt to the near-term uncertainties via its strong supply chain, global manufacturing footprint, and deep customer relationships.

Heartland Advisors, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“During the quarter, we initiated a new position in Applied Materials, Inc. (NASDAQ:AMAT), the largest and most diversified supplier of capital equipment, services, and solutions for semiconductor manufacturing. The company is a major supplier of wafer fabrication equipment (WFE), controlling 21% market share, which was built over decades of organic and inorganic growth. It is the world’s dominant player in deposition, a highly precise, mission-critical step in the fabrication process where a thin film imparts electrical characteristics to the wafer’s surface at the atomic level. We capitalized on the cyclical downturn in the semiconductor industry to purchase AMAT near our downside target. Our confidence in the company was further strengthened by insider buying, especially a $7mm stock purchase by CEO Gary Dickerson in early April. In our opinion, Applied Materials will enjoy several tailwinds, including increased demand for advanced packaging and complex manufacturing processes fueled by rising chip architecture complexity. That should boost WFE spending, positioning AMAT as a secular beneficiary. These tailwinds should lead to a re-rating of the stock as a premier analog semiconductor manufacturer along with Texas Instruments and Analog Devices, which command a multiple well above 25x earnings. At that multiple, AMAT shares could trade in the low $300 range based on mid-cycle EPS, up from its current price of around $170 a share.”

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.