10 Best Semiconductor Stocks to Buy According to Billionaires

7. Applied Materials Inc. (NASDAQ:AMAT)

Number of Billionaire Investors: 18

Billionaire Holdings: $2.0 Billion

Number of Hedge Fund Holders: 80

Applied Materials Inc. (NASDAQ:AMAT) operates as the world’s largest wafer fabrication equipment manufacturer and is a leading provider of materials engineering solutions. The company is a direct beneficiary of advancements in AI and the increasing semiconductor content in connected devices.

Applied Materials (NASDAQ:AMAT) is leveraging its advanced equipment and materials engineering to drive semiconductor innovation. The company plays a key role in producing chips for data centers, AI, and cloud applications. With growing demand, it anticipates significant market expansion, particularly in advanced process technologies like Gate-All-Around and Backside Power Delivery.

In a recent report, Wells Fargo analyst Joseph Quatrochi recently reaffirmed a Buy rating on Applied Materials with a $205 price target, after the company cleared an authorization of a $10 billion share repurchase on March 10. Share repurchases are generally seen as positive as they reflect management’s confidence in future demand and cash flows. The company also raised its quarterly dividend by 15%, marking eight consecutive years of growth. The analyst believes these strategic moves highlight a shareholder-focused capital allocation strategy, a stable financial outlook and long-term growth potential.