|Bid||203.7000 x 1000|
|Ask||203.8700 x 1300|
|Day's range||201.1800 - 203.8900|
|52-week range||139.2400 - 234.8800|
|PE ratio (TTM)||22.33|
|Earnings date||24 Jul 2018 - 30 Jul 2018|
|Forward dividend & yield||2.00 (1.05%)|
|1y target est||266.55|
David Tepper’s Appaloosa Management’s top buys in the first quarter were Micron Technology (MU), Lam Research (LRCX), Wells Fargo (WFC), UBS (UBS), and Allergan (AGN), changing its holdings by 8.5%, 2.7%, 1.6%, 1.3%, and 1.1%, respectively.
U.S. tech companies can finally breathe easy as Treasury Secretary Steve Mnuchin says that the U.S.-China trade conflict has been put on hold.
Stock futures rose Friday. Applied Materials fell on sales guidance. Chip-gear makers Lam Research and KLA-Tencor slid. So did Micron. Baidu fell as COO Lu Qi will leave the role and no longer oversee AI efforts.
Lam Research (LRCX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Zacks.com highlights: Lam Research, Mellanox Technologies, Logitech International, Amtech Systems, Cadence Design Systems and Citrix Systems
Zacks.com highlights: General Motors, Boston Scientific, Lam Research, NRG Energy and Celanese
Cowen & Co.’s Krish Sankar today initiated coverage of several chip equipment makers, with KLA-Tencor (KLAC) and Lam Research (LRCX) topping his list, with Outperform ratings, while he’s more cautious about ASML (ASML) and Applied Materials (AMAT). As you might expect, the recommendations for both Lam and KLA are based on the raging demand for memory chips, including both DRAM and NAND flash, for which Lam is the dominant supplier of manufacturing tools. KLA also has a lot to offer in this regard, Sankar believes.
Applied Materials (AMAT), KLA-Tencor (KLAC), and Lam Research (LRCX) are witnessing strong growth in the memory and logic segments. Revenue from memory almost doubled on a YoY (year-over-year) basis as the AI (artificial intelligence) trend picked up. On Applied Materials’ fiscal 1Q18 earnings call, the company’s CEO, Gary Dickerson, explained how the AI trend is boosting demand for memory and logic.
ROE helps investors distinguish profit-generating companies from profit burners and is useful in determining the financial health of a company.
Applied Materials (AMAT) is reporting strong revenue growth as the consumer base for electronic devices broadens with the advent of the Internet of Things, big data, and AI (artificial intelligence). The company earns more than 65% of its revenue from its Semiconductor Systems division. The world’s largest foundry, TSMC (TSM), is one of the Semiconductor Systems division’s customers.
In the previous article, we saw that Applied Materials (AMAT) crossed the $1 billion quarterly revenue mark in fiscal 1Q18 and is growing steadily every quarter as demand from memory customers increases. Its non-GAAP (generally accepted accounting principles) gross margin expanded 3.6% from 42.7% in fiscal 1Q16 to 46.3% in fiscal 1Q17 driven by high volumes and a rich product mix. On the other hand, KLA-Tencor (KLAC) improved its gross margin by 1.5% from 62.5% in 1Q17 to 64% in 1Q18.
Applied Materials (AMAT) supplies SME (semiconductor manufacturing equipment) to chip makers all over the world. As the world’s semiconductor manufacturing is concentrated in the APAC (Asia-Pacific) region, it’s the largest market for AMAT and its peers Lam Research (LRCX) and KLA-Tencor (KLAC). South Korea (EWY) is their largest market, providing 30% of their revenues.
For instance, Advanced Micro Devices’ (AMD) and Intel’s (INTC) stock prices rose post-earnings as they reported strong guidances, but Lam Research’s (LRCX) and TSMC’s (TSM) stock prices fell post-earnings as they reported weaker guidances. The next big earnings are those of Applied Materials (AMAT), which it’s due to report on May 17.
Investors also look at the earnings a company delivers against the investments it makes. This comparison shows the ability of a company’s management to generate higher returns from lower investments. The management’s efficiency is measured using efficiency ratios.
While the external environment is tense, the company’s fundamentals are strong. As a result, value investors are holding the stock while traders are trading on the volatility. As value investor Ben Graham wrote in The Intelligent Investor, “Price is not equal to value.
Strong first-quarter 2018 earnings and strong fundamentals of the U.S. economy suggest that the recent volatility may be transitory and the markets will continue their uptrend.
Semiconductor stocks were at the center of the March stock market sell-off, which was triggered by trade tensions between the US and China. To understand investors’ reactions to all the noise around market risk, we’ll look at technical indicators that analyze a stock based on its trade volume and price movement. When a stock’s short-term moving average is higher than its long-term moving average, it shows technical strength and indicates positive investor sentiment.
In the previous part of this series, we saw that Applied Materials (AMAT) investors reacted to the US–China trade tensions by sending the stock down 8.9% on March 22 and 23. From March 23 to April 17, AMAT rebounded 3.0%. It then braced for another fall as rival Lam Research (LRCX) reported its earnings a month before AMAT’s scheduled release.
This decline came as the company is exposed to market risk. The first risk is company-specific, which investors can reduce by diversifying their investments in similar stocks. The second is market risk, which arises from economic growth and geopolitical issues.