Applied Materials (AMAT) is one of the tech stocks bought by Trump's fellow Republican amid market rout

From Yahoo Finance: 2025-05-14 13:02:00

A list of 10 tech stocks that Trump’s fellow Republican bought amid a market rout was recently published. Hedge funds’ stock picks have been shown to outperform the market, with the top picks returning 373.4% since May 2014. Applied Materials, Inc. (AMAT) is one of the stocks on the list, known for providing services and manufacturing equipment for the semiconductor industry.

AMAT’s stock has fallen 16% this year due to industry cyclicality and the semiconductor trade war with China. Despite this, Jeffries upgraded the stock to Buy with a price target of $195, citing expected recovery in the DRAM and NAND markets. AMAT has limited exposure to China compared to its peers, making it relatively favorably positioned.

In addition to its semiconductor services, AMAT recently acquired a 9% stake in BE Semiconductor Industries. The two firms have been working together since 2020 on a hybrid bonding solution for AI chips. While AMAT ranks 7th on the list of tech stocks bought by Trump’s fellow Republican, some AI stocks may offer greater promise for higher returns in a shorter time frame.

For investors seeking an AI stock with significant upside potential trading at less than 5 times earnings, a report on the cheapest AI stock is available. It highlights an AI stock that has risen since the beginning of 2025 while popular AI stocks have declined. Looking beyond AMAT, exploring other AI stocks may lead to more promising investment opportunities.

Read more: Is Applied Materials (AMAT) the Tech Stock That Trump’s Fellow Republican Bought Amid Market Rout?