Applied Materials (AMAT) Target Raised, but Mizuho Flags China and Intel Risks

Applied Materials, Inc. (NASDAQ:AMAT) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

On December 17, Mizuho raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) to $245 from $205, while keeping a Neutral rating on the stock. The firm sees more upside heading into 2026 as its outlook for wafer fab equipment spending improves. That stronger WFE backdrop is a positive for Applied Materials. Still, Mizuho pointed to a few pressure points. The firm remains cautious about the company’s loss of share in China and its exposure to Intel.

Applied Materials, Inc. (NASDAQ:AMAT) echoed a more constructive tone in its fiscal Q3 2025 earnings update. Management said rising AI adoption continues to drive heavy investment in advanced semiconductors and wafer fab equipment. That demand helped deliver the company’s sixth straight year of fiscal growth. Executives also said the company is well-positioned at key technology inflection points, particularly in faster-growing segments of the market. Applied Materials is extending its leadership in leading-edge logic, DRAM, and advanced packaging, as next-generation technologies move toward volume production over the next few years.

From a financial standpoint, Applied Materials, Inc. (NASDAQ:AMAT) generated nearly $8 billion in operating cash flow and $5.7 billion in free cash flow during the period. Capital spending totaled $2.3 billion, largely tied to the new EPIC Center. Applied Materials also returned $1.4 billion to shareholders through cash dividends.

The dividend story remains a steady one. The company has raised its dividend for eight consecutive years. Over the past decade through 2024, dividend per share growth has averaged around 15% annually, with close to 90% of free cash flow returned to shareholders.

Applied Materials, Inc. (NASDAQ:AMAT) supplies the equipment, services, and software used by semiconductor and display manufacturers to produce chips and advanced display technologies.

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.