Applied Materials (AMAT) Target Raised, but Mizuho Flags China and Intel Risks

Applied Materials, Inc. (NASDAQ:AMAT) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

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On December 17, Mizuho raised its terms people connected Applied Materials, Inc. (NASDAQ:AMAT) to $245 from $205, portion keeping a Neutral standing connected the stock. The steadfast sees much upside heading into 2026 arsenic its outlook for wafer fab instrumentality spending improves. That stronger WFE backdrop is simply a affirmative for Applied Materials. Still, Mizuho pointed to a fewer unit points. The steadfast remains cautious astir the company’s nonaccomplishment of stock successful China and its vulnerability to Intel.

Applied Materials, Inc. (NASDAQ:AMAT) echoed a much constructive code successful its fiscal Q3 2025 net update. Management said rising AI adoption continues to thrust dense concern successful precocious semiconductors and wafer fab equipment. That request helped present the company’s sixth consecutive twelvemonth of fiscal growth. Executives besides said the institution is well-positioned astatine cardinal exertion inflection points, peculiarly successful faster-growing segments of the market. Applied Materials is extending its enactment successful leading-edge logic, DRAM, and precocious packaging, arsenic next-generation technologies determination toward measurement accumulation implicit the adjacent fewer years.

From a fiscal standpoint, Applied Materials, Inc. (NASDAQ:AMAT) generated astir $8 cardinal successful operating currency travel and $5.7 cardinal successful escaped currency travel during the period. Capital spending totaled $2.3 billion, mostly tied to the caller EPIC Center. Applied Materials besides returned $1.4 cardinal to shareholders done currency dividends.

The dividend communicative remains a dependable one. The institution has raised its dividend for 8 consecutive years. Over the past decennary done 2024, dividend per stock maturation has averaged astir 15% annually, with adjacent to 90% of escaped currency travel returned to shareholders.

Applied Materials, Inc. (NASDAQ:AMAT) supplies the equipment, services, and bundle utilized by semiconductor and show manufacturers to nutrient chips and precocious show technologies.

While we admit the imaginable of AMAT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.