Semiconductor manufacturers like and TSMC wouldn't be able to churn out more than $500 billion worth of chips each year without an array of complex equipment. Applied Materials (NASDAQ: AMAT) is one of the largest and most diversified semiconductor manufacturing equipment suppliers, and one analyst expects the stock to soar.

An analyst at B. Riley maintained a "buy" rating and boosted his price target from $220 to $250 on Applied Materials stock last week. That new price target represents a potential upside of about 32%. The analyst pointed to the company's better-than-expected recent results and the expectation that an industrywide recovery would develop through 2025.

While demand in portions of the semiconductor market, like AI chips, has been booming, other parts are only now coming out of a deep downturn. 

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Source Fool.com