Susquehanna Lifts PT on Applied Materials (AMAT) – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) is one of the best long-term growth stocks to invest in now. Susquehanna lifted the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $900 from $575 on June 30, and maintained a Positive rating on the shares. The firm updated its model after channel checks, suggesting an upward revision to SCE backlog now extending beyond one year, with WFE expected to reach as high as $300B. The firm is now raising its estimates for 2026 and 2027, along with introducing 2028 projections based on WFE of $250B.

Separately, Applied Materials, Inc. (NASDAQ:AMAT) announced on June 25 the introduction of a suite of new chipmaking systems to build the advanced 3D chip architectures that power next-generation AI. Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials, Inc. (NASDAQ:AMAT), stated that the transistor and materials technologies that previously drove performance gains in leading-edge logic are now becoming essential in DRAM, adding that as "DRAM scales to meet the bandwidth demands of HBM and AI workloads, the distinction between logic and memory process technology is converging. By leveraging our epitaxy leadership in leading-edge logic, Applied is uniquely positioned to drive this transition in DRAM."

Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions used to produce semiconductors and also focuses on the design, production, development, and servicing of critical wafer fabrication tools used for customers for the manufacture of semiconductors. The company's operations are divided into the following segments: Semiconductor Systems and Applied Global Services (AGS).

While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow.

Disclosure: None. Follow Insider Monkey on Google News.