By Overview
Applied Materials (ticker: AMAT), a leading equipment maker in the semiconductor industry, is set to report its earnings for the July quarter after the market closes. Analysts are anticipating strong results, with a consensus estimate of $6.15 billion in revenue and adjusted earnings per share of $1.74. Additionally, the company’s key customers include Intel (INTC) and Taiwan Semiconductor Manufacturing (TSM).
Analyst Optimism
Stifel analyst Brian Chin, who has a Buy rating and a target price of $150 for Applied Materials, expressed optimism regarding the company’s performance. He believes that Applied Materials’ differentiated product leadership will give it an edge over its rivals. Currently valued at around $138 per share, Chin expects the stock to outperform the market.
Positive Outlook
Chin predicts that Applied Materials will meet or even exceed the consensus estimate. He also anticipates that the company’s revenue will remain strong and continue to outperform the broader industry. One of the factors contributing to this positive outlook is Applied Materials’ success in securing orders for its less advanced ICAPS business. This segment primarily serves the auto and industrial markets.
Strong Performance
Over the past year, shares of Applied Materials have experienced a significant rally, with a 29% increase in value. In comparison, the iShares Semiconductor exchange-traded fund, which tracks the performance of the ICE Semiconductor Index, has risen by 16%.
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