Utilized Supplies (AMAT) Goal Raised, however Mizuho Flags China and Intel Dangers

Utilized Supplies, Inc. (NASDAQ:AMAT) is included among the many 13 Prime Tech Shares Paying Constant Dividends.

Photograph by Dan Dennis on Unsplash

On December 17, Mizuho raised its value goal on Utilized Supplies, Inc. (NASDAQ:AMAT) to $245 from $205, whereas holding a Impartial score on the inventory. The agency sees extra upside heading into 2026 as its outlook for wafer fab tools spending improves. That stronger WFE backdrop is a optimistic for Utilized Supplies. Nonetheless, Mizuho pointed to some stress factors. The agency stays cautious concerning the firm’s lack of share in China and its publicity to Intel.

Utilized Supplies, Inc. (NASDAQ:AMAT) echoed a extra constructive tone in its fiscal Q3 2025 earnings replace. Administration stated rising AI adoption continues to drive heavy funding in superior semiconductors and wafer fab tools. That demand helped ship the corporate’s sixth straight yr of fiscal development. Executives additionally stated the corporate is well-positioned at key know-how inflection factors, significantly in faster-growing segments of the market. Utilized Supplies is extending its management in modern logic, DRAM, and superior packaging, as next-generation applied sciences transfer towards quantity manufacturing over the following few years.

From a monetary standpoint, Utilized Supplies, Inc. (NASDAQ:AMAT) generated practically $8 billion in working money movement and $5.7 billion in free money movement through the interval. Capital spending totaled $2.3 billion, largely tied to the brand new EPIC Middle. Utilized Supplies additionally returned $1.4 billion to shareholders via money dividends.

The dividend story stays a gentle one. The corporate has raised its dividend for eight consecutive years. Over the previous decade via 2024, dividend per share development has averaged round 15% yearly, with near 90% of free money movement returned to shareholders.

Utilized Supplies, Inc. (NASDAQ:AMAT) provides the tools, providers, and software program utilized by semiconductor and show producers to provide chips and superior show applied sciences.

Whereas we acknowledge the potential of AMAT as an funding, we consider sure AI shares provide better upside potential and carry much less draw back danger. For those who’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

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Disclosure: None.