10 Best Manufacturing Stocks To Buy Now

8. Applied Materials Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 74

Applied Materials Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions that drive semiconductor chip and advanced display production. The company’s innovative equipment and software are critical to powering next-generation electronics and energy-efficient devices.

As of February 10, 2025, Applied Materials Inc. (NASDAQ:AMAT) has delivered a return of about 12.93% year-to-date, outperforming the broader market’s gain of approximately 3.14%. This strong performance demonstrates the company’s ability to capitalize on rising demand in the semiconductor industry amid rapid technological change and increased data center investments.

In fiscal year 2024, Applied Materials Inc. (NASDAQ:AMAT) reported revenue of approximately $27.2 billion and net income of around $7.2 billion. The company generated robust cash flows, with operating cash flow near $8.7 billion and free cash flow of roughly $7.5 billion. With such healthy metrics, the company continues to expand its portfolio in chip efficiency and advanced display technologies while maintaining a strong balance sheet that supports future innovation.

On January 17, 2025, KeyBanc analyst Steve Barger upgraded the stock from ‘Hold’ to ‘Buy’ and set a price target of $225, citing the company’s strong market position and growth prospects. AMAT is one of the best manufacturing stocks on our list.