30 Most Important AI Stocks According to BlackRock

8. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 77

Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. The shares have registered a steep fall in the past few days amid a broader selloff in the chip sector due to concerns about slowing growth. Applied Materials has also been impacted by a recent US government decision to add several technologies to an export control list, including quantum computing, advanced semiconductor manufacturing equipment, and additive manufacturing items, including equipment and components that can produce metal or metal alloy components. The export controls are likely to discourage firms like Applied Materials from doing business with Chinese entities.

Despite the negative headlines, Wall Street remains bullish on Applied Materials, Inc. (NASDAQ:AMAT) in the long term. JPMorgan analyst Harlan Sur recently raised the price target on the stock to $250 from $240 and kept an Overweight rating, noting that the company reported solid July quarter results driven by accelerating demand in advanced foundry/logic, DRAM, high bandwidth memory and ICAPs combined with sustained strength in services. The analyst added that the firm was well positioned to benefit from multiple upcoming technology inflections that should drive continued outperformance versus wafer fab equipment over the next several years.