Applied Materials, Inc. (AMAT) is one of the top tech stocks paying consistent dividends. Mizuho raised its price target on AMAT to $245 from $205, citing improved wafer fab equipment spending outlook. The company reported strong fiscal Q3 2025 earnings, generating nearly $8 billion in operating cash flow and $5.7 billion in free cash flow.

AMAT’s management highlighted rising AI adoption driving heavy investment in advanced semiconductors and wafer fab equipment. The company extended its leadership in leading-edge logic, DRAM, and advanced packaging. AMAT has raised its dividend for eight consecutive years, with close to 90% of free cash flow returned to shareholders.

Despite AMAT’s potential, some believe other AI stocks offer greater upside potential and less downside risk. The company supplies equipment, services, and software to semiconductor and display manufacturers. For those seeking an undervalued AI stock with significant upside potential, check out the free report on the best short-term AI stock.

Read more at Yahoo Finance: Applied Materials (AMAT) Target Raised, but Mizuho Flags China and Intel Risks