One of the big stock market success stories through 2024 involves companies related to artificial intelligence (AI). One business in the midst of this is a supplier of chip manufacturing equipment. applied materials (NASDAQ:AMAT)The company's stock has soared nearly 30% since the beginning of the year, more than three times the U.S. growth rate. S&P500 index.
One analyst who tracks the company thinks Applied's rapid growth is far from over. To emphasize his point, he raised his recommendation and significantly increased his price target.
Upgrades Applicable to Applied Materials
A Wall Street enthusiast is Cantor Fitzgerald's CJ Muse, who recently upgraded his recommendation on Applied Materials to Overweight (Buy) from the previous Neutral rating. He also made significant changes to his price target. He now thinks the tech hardware stock could reach $260 a share over the next 12 months or so, up from its previous level of $220. Additionally, Muse is now including Applied His Materials in its Top Picks collection.
There seems to be a lot of confidence behind this move. After all, its new target is more than 24% higher than the company's current stock price.
Why the explosion of optimism?Muse expects to see positive spending from the capital investment lines of top contract chip manufacturers. taiwan semiconductor manufacturing and chip lithography system specialist ASML. With these tailwinds, analysts believe Applied Materials has a “clear path to share gains” and solid profitability.
Benefit from the proliferation of AI
It is very unlikely that the AI train will slow down. Many sectors of the technology industry now expect companies to develop their own AI apps or use them to some degree. AI requires significant processing power, and Applied Materials is swimming in a sea of continually increasing demand.
Given this scenario, a very bullish new take on Muse stock is very real in my opinion.
Should you invest $1,000 in Applied Materials right now?
Before buying Applied Materials stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks Things investors can buy right now…and Applied Materials wasn't among them. These 10 stocks have the potential to generate impressive returns over the next few years.
when to think about it Nvidia This list was created on April 15, 2005…if you invested $1,000 at the time of recommendation. you have $533,293!*
stock advisor We provide investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks every month.of stock advisor For the service more than 4 times The resurgence of the S&P 500 since 2002*.
See 10 stocks »
*Stock Advisor will return as of April 8, 2024
Eric Volkman has no position in any stocks mentioned. The Motley Fool has roles in and recommends ASML, Applied Materials, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Will Applied Materials stock reach $260? 1 Wall Street analysts think so.Originally published by The Motley Fool
