Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban

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

Number of Hedge Fund Holders: 80

Applied Materials, Inc. is a manufacturing services, software, and equipment provider to the display, semiconductor, and related industries. It operates in the Display, Applied Global Services, and Semiconductor Systems segments.

At the end of the last month, the company received an upgrade from Jefferies ahead of the upcoming earnings season. Jefferies upgraded AMAT from Hold to Buy with an increased target price of $195 from $185, as a key beneficiary of DRAM and Edge. This upgrade was also based on the March guidance, minimizing China exposure, something that will help the company as the trade war intensifies.

At its previous earnings. AMAT guided for 7% revenue growth for full-year 2025. Expected adjusted EPS growth for the year is 10%, higher than the revenue growth. The company’s sustainable dividend and share buyback programs show its commitment to shareholders. It has also announced a new share buyback program worth $10 billion.

The stock rebounded strongly after the early April market rout but is in hot water again. Trading at near its 52-week lows and 12% below the lowest Wall Street price target of $164, there is no doubt that any further dip can be considered a buying opportunity.