10 Undervalued Chip Stocks Near 52-Week Lows

8. Applied Materials (NASDAQ:AMAT)

Applied Material investors had a strange 2024. The stock shot up over 70% in the first half of the year and then lost it all by the end of December. The cyclicality of the sector was at play and investors didn’t like it one bit.

2025 has started on a brighter note though. The stock recently received an upgrade from KeyBanc analysts. The rating was upgraded from Sector Weight to Overweight while the price target was moved to $225. The bank stated improving investor expectations as one reason for the upgrade. The market conditions are also expected to ease off for some of the companies in the sector, and AMAT is one of those.

KeyBanc also expects 2025 wafer fabrication equipment spending to be up by 8% compared to the 2024 levels, reaching $108 billion. This sets up the company well for an impressive 2025, though investors would love to have reduced volatility this time around.