Goldman Sachs owns around 0.31% of Applied Materials, Inc. (NASDAQ:AMAT) out of its portfolio, with a total portfolio value of around $2.68 billion. AMAT ranks among the top Goldman Sachs tech stocks to buy now.
Applied Materials seems to be proactive amid the robust AI demand. The company expects its semiconductor equipment business to soar more than 30% in 2026. The global AI computing infrastructure push has been crucial for semiconductor companies.
For illustration purposes only. Photo from Pixabay/Pexels
The company has partnered with major players, naming them innovation partners such as SPEED and TSMC. On May 26, Applied Materials partnered with SCREEN Semiconductor Solutions to utilize its wafer cleaning technology in its materials engineering to develop co-optimized process solutions for the most advanced chips. Similarly, Applied’s collaboration with TSMC announced on May 11 is part of its next era of AI. TSMC will work together with Applied’s EPIC Center in Silicon Valley to enhance equipment innovation, process integration, and materials engineering to deliver next-generation energy-efficient performance of the data center.
Analysts have a keen eye on AMAT. On May 27, TheFly reported that Mizuho’s Vijay Rakesh increased the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $540 from a previous target of $500, maintaining an Outperform rating on the stock. The analyst has raised its wafer fab equipment spending estimate from $142 billion to $153 billion for 2026 and the 2027 estimate from $163 billion to $190 billion. Applied Materials, specializing in the DRAM and wafer equipment market, keeps its investors in the loop due to higher demand for semiconductor equipment.
Considering the wafer market revision, Rakesh believes that Applied Materials’ earnings are underestimated and it will benefit from the NAND node transitions, TSMC spending, and high bandwidth memory pricing strength.
Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.
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