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Applied Materials Inc. (NASDAQ:AMAT) is one of the best data center stocks to buy right now. On April 10, analysts at Wolfe Research touted Applied Materials Inc. (NASDAQ:AMAT)’s competitive edge in the burgeoning DRAM market. They raised the stock’s price target to $500 from $450 while maintaining an Outperform rating.

The bullish stance comes on the heels of the company reiterating that DRAM will be the fastest-growing segment in 2026. In return, the research firm expects the company’s DRAM revenue to increase by 34% in calendar year 2027. The increase would be driven by the company’s strong position in deposition and conductor etch.

In addition, Wolfe Research expects Applied Materials’ NAND business to deliver a 10% increase in Calendar year 2027. The much lower growth compared to DRAM is due to the company’s weaker position in the segment relative to its peers.

On the other hand, MoffettNathanson lowered its price target on the stock to $214 from $231 but reiterated a Buy rating. The lower price target aligns with reduced valuation multiples across the company’s business segments.

On April 8, Applied Materials announced two new chipmaking systems, the Applied Producer Precision Selective Nitride PECVD and Endura Trillium ALD. These tools are designed for producing 2nm and smaller gate all around transistors used in advanced AI and hyperscale data center chips, offering atomic level precision to shrink transistors further.

Applied Materials, Inc. (NASDAQ:AMAT) is the global leader in materials engineering solutions, providing the equipment, services, and software used to manufacture semiconductor chips and advanced displays. They enable chipmakers to create smaller, faster, and more energy-efficient electronics, serving as a foundational technology provider for AI and consumer electronics.

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.

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