B. Riley Raises Applied Materials, Inc. (AMAT) Price Target to $400, Reaffirms Buy

Applied Materials, Inc. (NASDAQ:AMAT) is included among the

13 Best Roth IRA Stocks to Buy Now.

On February 9, B. Riley raised its price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $400 from $365. It reiterated a Buy rating on the stock. The firm said it expects strong fiscal first-quarter results, with performance likely coming in modestly above consensus estimates.

That same day, CNBC reported comments from Christopher Buchbinder of Capital Group. As lead portfolio manager of the Capital Group Dividend Value ETF, he focuses on companies with investment-grade credit ratings and a consistent record of paying income. Speaking about Applied Materials, Buchbinder made the following comment:

“We could see that there was an opportunity as the memory manufacturers would need to ramp up their investments to support the AI build out. You’re beginning to see signs of that. It hasn’t fully played out. We think this is a multi-year cycle that we’ll see develop.”

Applied Materials operates within a business model that tends to offer steadier growth. Building and expanding chip fabrication plants requires years of planning, and the equipment installed in those facilities needs ongoing servicing. That recurring service work provides an additional stream of revenue for the company.

As semiconductor production expands to meet rising demand tied to industrial automation, electric vehicles, and AI technologies, Applied Materials is positioned to grow alongside the broader industry. The company has also maintained strong operating profit margins and returns its free cash flow to shareholders through dividends and share repurchases.

Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions provider serving the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display.

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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