AI Boom Fuels Bullish Analyst Outlook for Applied Materials (AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) is one of the AI Stocks in Focus This Week. On December 2, KeyBanc Capital Markets raised its price target on the stock to $285 from $240 while maintaining an “Overweight” rating. Analysts view AMAT as well-positioned ahead of key technology shifts, supported by long-term tailwinds from AI-driven demand and advanced node transitions.

"Increasing PT on Favorable Relative Positioning Ahead of Several Tech Transitions; Following internal review & analysis, we’re adjusting AMAT estimates, introducing 2028, and raising our PT to $285 from $240.”

AMAT is attractively valued than its peers, with competitors having higher embedded expectations in their current valuations. As such, the firm believes that the company will benefit from multi-year demand tailwinds “driven by power/performance hungry AI uses & devices.”

These AI demands are pushing the industry towards new technologies such as N2/GAA, HBM, Advanced packaging; all of which will benefit AMAT and similar equipment makers.

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.

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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