TD Cowen Says This Memory Chip Maker Is One of the Best Stocks to Buy for 2026

Core Viewpoint - The demand for memory chips is surging due to artificial intelligence operations, creating a competitive environment among AI and consumer electronics companies for the limited supply of these chips. This trend presents significant growth potential for Applied Materials in 2026 [1]. Group 1: Company Overview - Applied Materials is a leading materials engineering solutions company headquartered in Santa Clara, California, specializing in equipment for semiconductor manufacturing processes [4]. - The company operates through various divisions, including Semiconductor Products, Applied Global Services, and Display, serving a diverse global customer base [5]. - Applied Materials has a market capitalization of $214 billion [5]. Group 2: Financial Performance - In the past 52 weeks, Applied Materials' stock has increased by 56%, and it has risen by 64% over the past six months, reaching a 52-week high of $273.59 [6]. - The company's Q4 results for fiscal 2025 showed a quarterly net revenue decrease of 3% year-over-year to $6.80 billion [8]. Group 3: Market Position and Analyst Outlook - The demand for dynamic random access memory (DRAM) and the leading-edge foundry industry is experiencing strong tailwinds due to AI, positively impacting Applied Materials [2]. - TD Cowen analysts have raised the price target for Applied Materials from $260 to $315, maintaining a "Buy" rating, indicating a potential upside of 16.9% from current levels [2].