The semiconductor industry didn’t have a memorable 2023, as sales declined year over year. However, the good sign is that the industry has been trying to stage a solid rebound since the second half of the year. Sales have been steadily on the rise and are poised to grow further in 2024.The Semiconductor Industry Association (SIA) said earlier this month that global semiconductor sales totaled $526.8 billion in 2023, reflecting a decline of 8.2% from $574.1 billion in 2022.However, microchip sales totaled $1 ...

The stock of leading semiconductor equipment supplier Applied Materials (AMAT 6.35%) rallied 6.4% on Friday to all-time closing highs near $200, following the company's first fiscal quarter earnings report.As I've written before, Applied is one of the least-risky ways to play the growth of semiconductors and artificial intelligence applications. But is the stock still a buy at all-time highs?A diversified "arms dealer" to semis and AIWhile Applied is known by many as a very cyclical stock, it has actually p ...

Key TakeawaysThe S&P 500 dropped 0.5% on Friday, Feb. 16, 2024, after a report showed that wholesale prices rose more than expected in January.Shares of Digital Realty Trust plunged after the REIT posted lower-than-expected quarterly funds from operations.Semiconductor equipment manufacturer Applied Materials beat profit and sales estimates amid strong AI-driven demand, and its shares jumped higher.Major U.S. equities indexes lost ground on Friday after Producer Price Index (PPI) data showed that wholesale ...

Investors in semiconductor chip equipment maker Applied Materials (AMAT 6.35%) had a fantastic day on Friday, as a powerful earnings beat added billions of dollars to the value of their company. At least a dozen separate analysts raised their price targets on Applied Materials stock in response to the "beat," but one rating stands out:On Friday, Susquehanna Financial Group analyst Mehdi Hosseini raised his price target to $160 per share, as StreetInsider.com reports. And this implies that Applied Materials ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Applied Materials Inc. (AMAT) reported first-quarter fiscal 2024 non-GAAP earnings of $2.13 per share, surpassing the Zacks Consensus Estimate by 12.1%. Moreover, the figure improved 5% from the year-ago quarter’s reported number.Net sales of $6.71 billion were down 0.5% from the year-ago quarter’s reported level. The figure surpassed the Zacks Consensus Estimate of $6.47 billion.Softness in the Semiconductor Systems segment remained a headwind.Weakening momentum across Taiwan, Southeast Asia, the United St ...

Applied Materials (AMAT 6.26%) shares are moving higher Friday morning, up 6.7% through 10:20 a.m. ET after the manufacturer of equipment for semiconductors production reported better-than-expected Q1 2024 sales and earnings last night.Heading into earnings day, analysts had forecast Applied Materials would earn $1.91 per share on sales of $6.5 billion. Applied beat both targets, reporting more than $6.7 billion in sales and a per-share profit of $2.13.Applied Materials earnings reportAnd this news just kee ...

Key TakeawaysApplied Materials shares jumped in pre-market trading Friday after the company beat first-quarter earnings and revenue estimates, and issued a strong current-quarter outlook.The company said its chip equipment business sits positioned to outpace the semiconductor market due to growing demand for more-complex chips.The top trendline of an ascending channel in Applied Materials shares may become a key future support area during pullbacks before another potential move higher. Applied Materials, ...

Applied Materials Inc. (NASDAQ: AMAT), the leading US manufacturer of chipmaking machinery, saw its share price surge in late trading following its optimistic revenue forecast for the current period. This indicates a potential uptick in investments by major semiconductor companies in new production technologies. Q2 sales set to reach about $6.5 billionCopy link to sectionThe company expects fiscal second-quarter sales to reach approximately $6.5 billion, exceeding the average analyst estimate of $6.32 billi ...

Financial Data and Key Metrics Changes - Applied Materials reported Q1 2024 revenue of $6.7 billion, slightly down year-over-year, but non-GAAP gross margin increased by 110 basis points to 47.9% [24][25] - Non-GAAP operating expenses grew by 5.6% to $1.23 billion, while non-GAAP EPS increased nearly 5% to $2.13 [24][25] - The company generated $2.3 billion in operating cash flow and $2.1 billion in free cash flow, distributing $966 million to shareholders, including $266 million in dividends and $700 million in buybacks [26] Business Line Data and Key Metrics Changes - Semiconductor Systems revenue was strong at $4.91 billion, with record DRAM and edge system sales, and a non-GAAP operating margin of 35.7% [25] - Applied Global Services (AGS) revenue increased approximately 8% year-over-year to nearly $1.8 billion, marking its 18th consecutive quarter of growth, with a non-GAAP operating margin of 28.3% [25][17] - Display segment revenue was $244 million, with a non-GAAP operating profit of 10.2% [25] Market Data and Key Metrics Changes - The company expects NAND revenues to increase year-on-year, but it will remain less than 10% of total wafer fab equipment spending [7] - High-bandwidth memory (HBM) is projected to grow at a 50% compound annual growth rate, with HBM packaging revenues expected to reach almost $0.5 billion in fiscal 2024 [9][11] - The DRAM market share for Applied has increased significantly, with revenues larger than its two closest process equipment peers combined [10] Company Strategy and Development Direction - The company is focused on an inflection-focused innovation strategy, aiming to accelerate key technology innovations critical for AI, IoT, electric vehicles, and renewable energy [6][7] - Applied Materials is enhancing collaboration with customers and partners to drive innovation and commercialization velocity [16][18] - The company is expanding its global innovation network and has formed partnerships with organizations like Leti and MIT to accelerate ICAPS innovation [16] Management's Comments on Operating Environment and Future Outlook - Management noted that overall market dynamics are improving, with increased capital investment by cloud companies and normalizing memory inventory levels [7] - The company anticipates continued strength in DRAM and leading-edge foundry-logic, despite some project delays [7][8] - Management expressed optimism for 2025, citing improvements in inventory and utilization across the semiconductor market [48] Other Important Information - The company has increased its estimated useful lives of plant and equipment, which positively impacted non-GAAP EPS by $0.03 [27] - The company refined its allocation of stock-based compensation, enhancing visibility over costs without impacting overall operating profit or EPS [27] Q&A Session Summary Question: DRAM performance in China - Management noted high shipments of DRAM from China, expecting normalization from current elevated levels to around 30% over the year [31][34] Question: WFE environment in 2024 - Management expects DRAM to remain strong, NAND to improve slightly, and leading logic to grow as new investments ramp up [36][37] Question: Outperformance expectations for 2024 - Management anticipates continued outperformance due to exposure to fast-growing markets and major inflections [41][43] Question: Advanced foundry-logic program delays - Management acknowledged that delays are affecting schedules but does not expect changes in the ultimate destination of projects [67] Question: ICAPS business growth - Management indicated that ICAPS grew approximately 40% in 2023 and remains a strong market for the company [70]