Applied Materials, Inc. (NASDAQ:AMAT) received a “Buy” rating from Bank of America with a $250 price target. The firm sees growth potential in wafer fab equipment (WFE) in 2026, driven by DRAM investments. Estimates for WFE growth in 2025 and 2026 have been raised by 6% and 9%, respectively.

AMAT is a key player in materials engineering solutions for the semiconductor industry. While it presents investment opportunities, other AI stocks may offer higher upside potential with lower risk. Investors seeking undervalued AI stocks can explore the best short-term AI stock.

For more insights on AI stocks, check out “10 AI Stocks Every Investor Should Watch” and “10 Trending AI Stocks on Wall Street.” No disclosures were made in the article.

Read more at Yahoo Finance: Applied Materials (AMAT) Stock Upgraded to Buy as BofA Targets $250 on DRAM Strength