Applied Materials Poised to Surge to $380 as AI Chip Demand Grows
Applied Materials stock (NASDAQ:AMAT) may reach close to $380 in the next few years as capital spending on advanced chip making equipment is projected to nearly double by 2028. With revenues growing at a healthy pace and expectations of an 81% increase by FY’28, the company is well-positioned to benefit from the AI chip boom.
The generative artificial intelligence wave is driving demand for semiconductors, benefiting companies like Applied Materials. With a focus on new technologies and disciplined capital spending, the company’s adjusted net margins are expected to reach about 31% by FY’28. This could lead to a 2.2x growth in earnings over the next three years, potentially driving the stock price to $380.
While there are risks associated with investing in individual stocks like AMAT, the Trefis Reinforced Value (RV) Portfolio has outperformed its benchmark indices. The quarterly rebalanced mix of large-, mid-, and small-cap RV Portfolio stocks provides a responsive way to capitalize on market conditions while limiting losses, as shown in RV Portfolio performance metrics.
Read more at Nasdaq: How Applied Materials Stock Can Surge To $380