Applied Materials has a leg up over competitors, according to Jefferies. The bank upgraded the semiconductor manufacturer to buy from hold. Analyst Blayne Curtis also lifted his price target to $195 from $185, implying upside of roughly 32% from Thursday’s close. Curtis pointed to Applied Materials’ attractive valuation as a catalyst for the upgrade. He added that the stock is a leading beneficiary of spending growth in DRAM, or the dynamic random access memory type of storage capacity. Applied Materials also has the lowest China exposure among the big three U.S. semiconductor companies, meaning it could potentially better hedge President Donald Trump’s tariffs than its competitors. AMAT 1Y mountain AMAT 1Y chart “Leading Edge and DRAM beneficiary and March guidance brings China exposure to the lowest in the group. Currently trading at the cheapest in the group,” Curtis wrote. Curtis added that Applied Materials could also benefit from U.S. semiconductor nationalization trends — that is, an initiative to move supply chains back to domestic shores. He underscored the company’s dividend increases and stock buybacks as an additional catalyst, alongside its market share gains in certain subindustries. Shares of Applied Materials have slipped 9% this year, and are now down 28% over the past 12 months. Analysts are generally bullish on the stock. Of the 35 who cover Applied Materials, 26 have a buy or strong buy rating, LSEG data shows. The average price target also implies upside of 40% going forward. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
