Seaport Research Initiates Coverage of Applied Materials (AMAT) with Buy

Applied Materials, Inc. (NASDAQ:AMAT) is one of the

10 Strong Buy S&P 500 Stocks to Invest In.

On May 4, 2026, Seaport Research initiated coverage of Applied Materials, Inc. (NASDAQ:AMAT) with a Buy rating and a $500 price target. The firm said the company is among the best-positioned global WFE suppliers, noting that while it does not have ASML’s monopoly in EUV lithography, it offers tools across deposition, etch, implant, CMP, cleaning, and more, making its role in advanced semiconductors “almost as irreplaceable.”

On May 3, 2026, Applied Materials, Inc. (NASDAQ:AMAT) agreed to acquire ASMPT Limited’s NEXX business, expanding its panel-level advanced packaging portfolio. The company said the deal supports the development of technologies that enable larger AI accelerators with improved energy efficiency.

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.

On April 27, 2026, Erste Group upgraded Applied Materials, Inc. (NASDAQ:AMAT) to Buy from Hold, citing rising investment in advanced semiconductors driven by AI, while noting Applied supplies the equipment needed for this buildout. Earlier in April, B. Riley analyst Craig Ellis raised the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $485 from $450 and maintained a Buy rating after updating semiconductor capital spending outlooks for 2026 to 2028.

Applied Materials, Inc. (NASDAQ:AMAT) provides equipment and materials engineering solutions for semiconductor manufacturing and related industries globally.

While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.