Jim Cramer’s Latest Lightning Round: Top 10 Stocks

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

Number of Hedge Fund Investors: 77

Jim Cramer said in a latest program that Applied Materials is a Buy despite China-related headwinds.

“I think the company is doing well I think the government is not crazy about their posture because they do so much business in China. I think that’s a shame – to criticize a company or to be skeptical of a company that has done a great job,” Cramer said.

Applied Materials, Inc. (NASDAQ:AMAT) recently posted decent quarterly results which showed the contribution of China in the revenue mix fell.

In Q3, Applied Materials, Inc. (NASDAQ:AMAT) core semiconductor systems segment posted $4.924 billion in revenue, a $248 million increase year-over-year. The company guided Q4 EPS at $2.18, slightly ahead of analyst estimates by three cents, with revenue expected to land around $6.93 billion. While sales growth has been sluggish this year, there’s optimism for a pickup in 2025 and 2026.

Currently, Applied Materials, Inc. (NASDAQ:AMAT) is trading at around 23 times earnings, which is 5 points higher than its three-year average. While the current growth rates of the company might not justify this valuation, the possible increase in growth in 2025 and 2026 makes the stock a hold for the long term.

After the results, Wells Fargo analyst Joe Quatrochi reiterated his  Overweight rating but reduced its price target to $260 from $280.