Why Applied Materials Stock Rose This Week
Shares of semiconductor equipment manufacturer Applied Materials (NASDAQ: AMAT) jumped this week following multiple analyst upgrades. Booming demand for artificial intelligence (AI) infrastructure, which is driving up demand for various types of chips, was ultimately behind the analyst activity. As of early Thursday afternoon, Applied Materials stock had gained about 7.6% for the week, according to data provided by S&P Global Market Intelligence.
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On Monday, Bank of America analysts upgraded Applied Materials stock to a buy while raising their price target to $250. The analysts expect strong growth for wafer fab equipment in 2026 thanks to investments in DRAM capacity. The boom in AI infrastructure is pushing up demand for high-bandwidth memory, a variant of DRAM, as well as for standard data center DRAM chips.
Source Fool.com
