Applied Materials (AMAT) is climbing through the roof!
AMAT has a large market share of equipment for use in the front end of the semiconductor fabrication process. They have a strong market given their recent years' sales increases. Moreover, they have a reputation of quality products and reliable service. With AI and big data growing in importance with each passing day, AMAT is well positioned.
As with any investment, you need to completely understand the downsides. Their Capex is consistently below their depreciation. Maybe the true life of their manufacturing equipment is much longer than recognized in depreciation schedules. Also, semi-conductors has historically been a cyclical industry.
I own this from several years back so my margin of safety is on the high side. Do you want to own it? It bears investigating. You make the call!
