Long-Term Stock Portfolio: Best Stocks for 10 Years

8. Applied Materials Inc. (NASDAQ:AMAT)

10-Year Revenue CAGR: 11.60%

Number of Hedge Fund Holders: 74

Applied Materials Inc. (NASDAQ:AMAT) supplies equipment, services, and software to the semiconductor industry. It provides critical technologies for the production of semiconductors used in a range of electronic devices, including computers, smartphones, and other consumer electronics. Its products and services are essential for the advancement of semiconductor technology.

The company achieved a record revenue of $27.2 billion in FY2024, representing a 2.5% year-over-year increase, driven by solid performance in the wafer fabrication equipment (WFE) segment. In FQ4 2024, it reported a revenue of $7.05 billion, a 5% increase year-over-year. Semiconductor Systems revenue grew 6%, driven by demand in leading-edge foundry logic, while DRAM sales declined due to elevated purchases in the prior year. Applied Global Services (AGS) made a record revenue of $1.64 billion, driven by growth in services and a 10% increase in tools under service agreements.

It expects continued momentum in the WFE market, with FQ1 2025 revenue projected to reach $7.15 billion, a ~7% year-over-year increase. This growth is anticipated to be driven by strong demand in leading-edge logic and the ICAPS nodes. The company’s focus on innovation, strong customer relationships, and operational excellence positions it for continued success.