Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Applied Materials semiconductor sales to outperform WFE capex - Loop Capital

Stock Markets Dec 07, 2022 13:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
 
AMAT
-3.44%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Loop Capital analysts started Applied Materials (NASDAQ:AMAT) with a Buy rating and $125 price target in a note to clients on Wednesday.

They told investors the firm believes AMAT's Semiconductor sales will "outperform WFE capex, both during the current downturn and when capex turns positive again, which we estimate will be in 3Q24."

"Our view stems from AMAT's PPACt initiatives, which we favor, as they focus on newer methods to advance chip nodes even as Moore's Law slows. AMAT's core competencies line up well with these needed solutions; i.e., many are materials-based. AMAT's larger exposure to foundry/logic versus memory and its AGS segment sales should also limit sales declines in the intermediate term," stated the analysts.

In addition, the firm also favors the company's thrusts in co-optimizing and integrating equipment which "provides new, valued-added solutions for customers," while "the ICAPS BU focuses on trailing edge markets, which have accelerated in the last several years," and Loop Capital expect these sales to grow long-term.

Furthermore, they said "self-help factors" of keeping many operating costs flat and share repurchasing also limit earnings declines while "WFE is weak and pave the way for a pivot back to strong bottom line growth in 2H24-2025."

"We believe the stock will be revalued versus its peers on WFE capex out-performance and a limited duration of quarterly earnings declines," the analysts concluded.

Applied Materials shares are up 2.5% Wednesday.

Applied Materials semiconductor sales to outperform WFE capex - Loop Capital
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email