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Is Applied Materials Inventory Going to $260? 1 Wall Avenue Analyst Thinks So.

One in all the mammoth inventory market success tales so far in 2024 involves companies related to artificial intelligence (AI). One enterprise within the thick of it’s miles chipmaking gear seller Applied Materials (NASDAQ: AMAT), which has considered its fragment tag leap with regards to 30% elevated year-to-date, bigger than triple the percentage rate progress of the S&P 500 index.

One analyst monitoring the firm thinks Applied Materials’ surge is nowhere shut to its pause. He’s even upgraded his advice and given his tag purpose a hefty boost to underscore the level.

Upgrade utilized to Applied Materials

The Wall Avenue enthusiast is Cantor Fitzgerald’s C.J. Muse, who lately upped his Applied Materials advice to chubby (read: aquire) from his earlier just. He also made relatively the alternate to his tag purpose; he now believes the tech hardware inventory might perhaps perhaps per chance hit $260 per fragment over the next Three hundred and sixty five days or so, up from his earlier level of $220. What’s more, Muse is now alongside side Applied Materials in his sequence of top picks.

There looks to be relatively a level of self perception on the again of this switch. That new purpose, after all, is bigger than 24% elevated than the firm’s fresh fragment tag.

Why the burst of optimism? Muse expects “particular spending reads” from the capital expenditure strains of top contract chip maker Taiwan Semiconductor Manufacturing and chip lithography methods specialist ASML. With such tailwinds, the analyst believes, Applied Materials has “a transparent path to fragment beneficial properties” and sturdy profitability.

Taking advantage of the AI surge

The AI assert is extremely no longer going to slack down. In diverse corners of the tech alternate, it’s now expected that agencies will either have their very possess AI apps, or they’ll employ them to some level. AI requires primary processing vitality, so Applied Materials is swimming in a sea of sustainably rising interrogate.

Given this peril, Muse’s very bullish new steal on the inventory is relatively realistic, in my peek.

Might per chance perhaps well web to mute you make investments $1,000 in Applied Materials perfect now?

Sooner than you have inventory in Applied Materials, effect in mind this:

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Eric Volkman has no space in any of the shares mentioned. The Motley Fool has positions in and recommends ASML, Applied Materials, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and create no longer necessarily deem these of Nasdaq, Inc.

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