Applied Materials (AMAT): "The Arms Dealer of the Semiconductor Revolution."

Alpha Wealth Funds, LLC, an investment management company, released its Q3 2025 letter for the “Insiders Fund”. A copy of the letter can be downloaded here. The fund returned 4.96% in September, bringing the YTD returns to 21.37%. This compares to the benchmark, S&P 500 September return of 3.65% and the year-to-date return through September 30, 2025, of 14.83%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alpha Wealth Insiders Fund highlighted stocks such as Applied Materials, Inc. (NASDAQ:AMAT). Applied Materials, Inc. (NASDAQ:AMAT) offers manufacturing equipment, services, and software to the semiconductor, display, and related industries. The one-month return of Applied Materials, Inc. (NASDAQ:AMAT) was -4.729%, and its shares gained 56.83% of their value over the last 52 weeks. On December 31, 2025, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $256.99 per share, with a market capitalization of $204.729 billion.

Alpha Wealth Insiders Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its third quarter 2025 investor letter:

"Business: Applied Materials, Inc. (NASDAQ:AMAT) is a leading semiconductor-equipment and materials engineering company. It supplies the machines and processes for chip fabs, display tech, and advanced packaging. Heavy China exposure and new U.S. export curbs is mitigated by the need and rush to move investment in chip manufacturing back to the U.S.

Insider Buying/Selling: Gary E. Dickerson (CEO) purchased 50,000 shares on April 3, 2025, at about $137.30/share.

Recent News: Here are some recent developments around AMAT that could move the stock — take these as tactical inputs, not gospel:

Export control hit on China exposure New U.S. export rules (extending to subsidiaries of blacklisted firms) are expected to shave ~$600 M off AMAT’s fiscal 2026 revenue, plus ~$110 M in Q4 FY25. (Reuters) Shares dropped ~3% on that warning. (Reuters)…” (Click here to read the full text)

Applied Materials, Inc. (NASDAQ:AMAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 89 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the third quarter, up from 81 in the previous quarter. While we acknowledge the potential of Applied Materials, Inc. (NASDAQ: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.

In another article, we covered Applied Materials, Inc. (NASDAQ:AMAT) and shared the list of best-performing dividend stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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