Micron is Up 44% in 2026: Is It a Better Buy Than Camtek or Cohu? - 24/7 Wall St.[S&P 5006,873.70 -1.11%] [Dow Jones49,658.20 -0.97%][Nasdaq 10024,859.50 -1.42%][Russell 20002,622.79 -1.88%][FTSE 10010,439.00 -0.78%][Nikkei 22557,001.70 -2.07%][Live Nasdaq Composite: Tech Stock Volatility Persists on Mixed Economic Signals][Investing]# Micron is Up 44% in 2026: Is It a Better Buy Than Camtek or Cohu?### Quick ReadMicron Technology (MU) surged 44% year-to-date and 323% over one year. Micron beat Q1 fiscal 20 ...

Core Insights - Camtek Ltd. has received a total of $45 million in Hawk orders from an IDM customer for AI applications to be delivered in 2026 [1] - The company specifically announced a $25 million order for Hawk systems from a tier-1 IDM for AI applications [1]

Core Viewpoint - The semiconductor equipment sector is experiencing significant growth, driven by increased demand for chips, particularly due to advancements in artificial intelligence (AI) [1][2][3]. Group 1: Stock Performance - The S&P 500 has only risen by 1% since the start of 2026, while Lam Research, Applied Materials, and KLA have outperformed with increases of 27.6%, 25.8%, and 24.6% respectively [1]. - Israeli companies Nova Ltd. and Camtek have seen stock increases of 38% and 34% respectively during the same period, with Nova achieving a market cap of $13.7 billion and Camtek at $6.6 billion [2]. Group 2: Market Demand and Investment - The demand for semiconductor equipment is rising due to the accelerated development of AI, leading to increased investments in wafer fabrication equipment (WFE), which is expected to reach $160 billion this year, up from a previous forecast of $135 billion [4]. - There is a significant demand for memory chips, advanced packages, and processors to support data centers, alongside a shortage of production capacity, prompting increased investment budgets [5]. Group 3: Future Outlook - Analysts from Cantor predict that the AI infrastructure investment cycle is just beginning and will accelerate between 2026 and 2028, positively impacting major companies like KLA, Lam Research, and ASML [6]. - Cantor expects these companies to report improved orders and a positive outlook for 2026, supported by a strong AI computing cycle [6]. Group 4: Recommendations and Price Targets - Cantor maintains a balanced risk/reward ratio for Nova ahead of upcoming reports, recommending it for long-term investment, while suggesting a neutral stance on Camtek due to uncertainties regarding order timing [9]. - Bank of America has raised price targets for Nova to $450 and for Camtek to $160, indicating confidence in their future performance [9].

Core Viewpoint - Camtek (CAMT) shares experienced an 8.6% increase, closing at $144.38, driven by strong demand in AI and HPC, along with capacity expansion in HBM and shifts in packaging towards OSATs [1] Group 1: Stock Performance - Camtek's stock has gained 28.9% over the past four weeks, indicating strong market interest [1] - The stock's recent trading session saw a higher-than-average volume of shares exchanged, reflecting increased investor activity [1] Group 2: Earnings Expectations - Camtek is projected to report quarterly earnings of $0.83 per share, representing a year-over-year increase of 7.8% [2] - Expected revenues for the upcoming quarter are $127.21 million, which is an 8.5% increase compared to the same quarter last year [2] Group 3: Earnings Estimate Trends - The consensus EPS estimate for Camtek has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4] - Historical data indicates that trends in earnings estimate revisions are closely linked to short-term stock price movements, highlighting the importance of monitoring these trends [3] Group 4: Industry Context - Camtek operates within the Zacks Electronics - Measuring Instruments industry, which includes other companies like inTest Corporation (INTT) [4] - inTest's stock also saw an 8.9% increase, closing at $8.72, with a return of 8.5% over the past month [4]

Core Viewpoint - Camtek Ltd. (CAMT) is positioned as a strong investment opportunity to capitalize on the growth in semiconductor manufacturing driven by artificial intelligence [1] Company Analysis - Camtek Ltd. is identified as a clean way to gain exposure to the semiconductor manufacturing sector, particularly benefiting from advancements in AI technology [1] - The investment strategy focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of buying quality companies at a discount to their intrinsic value [1]

Summary of Key Points from Conference Call Records Industry Overview: Semiconductors Core Insights - **Sustained WFE Growth**: The semiconductor industry is expected to see an 11% year-over-year (YoY) growth in wafer fabrication equipment (WFE) by 2026, driven by transitions in leading-edge logic and DRAM due to AI datacenter expansions [1][6][10]. - **Memory Market Dynamics**: The NAND supply/demand balance has tightened significantly, with price increases anticipated through 2026, supported by strong SSD demand from hyperscalers and enterprises [1][6]. - **Investor Expectations**: Elevated investor expectations following strong third-quarter results mean that upcoming earnings and guidance must meet high standards [1][7]. Company-Specific Insights Applied Materials (AMAT) - **Rating**: Buy - **Outlook**: Expected upside in guidance due to improved memory spending outlook, with a focus on DRAM and foundry/logic segments [2][6]. - **Financial Estimates**: Anticipated 1% revenue upside for the quarter and 4% quarter-over-quarter (QoQ) revenue improvement, with non-GAAP EPS estimates 8% above consensus for CY26 [8][10]. Entegris (ENTG) - **Rating**: Sell - **Concerns**: Cautious outlook due to margin headwinds and limited growth from fab construction-related CapEx, which constitutes about 25% of revenue [3][58]. - **Financial Estimates**: Expected 2% revenue downside for the quarter, with guidance for flattish revenue QoQ [60]. Lam Research (LRCX) - **Rating**: Buy - **Focus Areas**: Investors are expected to concentrate on DRAM spending and NAND upgrades, with modest revenue upside anticipated for the quarter [16][18]. - **Financial Estimates**: Expected 2% revenue upside for the quarter, with non-GAAP EPS estimates 1% above consensus for CY26 [17]. KLA (KLAC) - **Rating**: Neutral - **Investor Focus**: Management's view on process control intensity and growth expectations for 2026 WFE will be critical [24][26]. - **Financial Estimates**: Anticipated over 1% revenue upside for the quarter, with guidance for flat revenue QoQ [25]. MKS Instruments (MKSI) - **Rating**: Sell - **Outlook**: Focus on 2026 WFE expectations and chemistry momentum, with a balanced investor positioning [32][34]. - **Financial Estimates**: Expected 1% revenue upside for the quarter, with guidance for slight revenue growth QoQ [33]. Teradyne (TER) - **Rating**: Buy - **Key Focus**: Sustainability of semi-test growth and Merchant GPU qualification progress [40][43]. - **Financial Estimates**: Expected 2% revenue upside for the quarter, with non-GAAP EPS estimates 13% above consensus for CY26 [42]. Qnity (Q) - **Rating**: Buy - **Investor Focus**: Wafer start recovery and operational execution will be key areas of interest [49][52]. - **Financial Estimates**: Expected 2% revenue upside for the quarter, with guidance for flattish revenue QoQ [51]. SanDisk (SNDK) - **Rating**: Buy - **Focus Areas**: Sustainability of NAND pricing growth and enterprise SSD qualification momentum [66][68]. - **Financial Estimates**: Expected 2% revenue upside for the quarter, with non-GAAP EPS estimates 9% below consensus for CY26 [67]. Seagate (STX) - **Rating**: Buy - **Investor Focus**: Sustainability of HDD pricing growth and HAMR production ramp [73][75]. - **Financial Estimates**: Expected 1% revenue upside for the quarter, with guidance for flattish revenue QoQ [74]. Additional Considerations - **CapEx Monitoring**: Investors are advised to closely monitor CapEx revisions from leading foundry and memory players, as well as signs of wafer start recovery, which could create upside for select suppliers [1][19]. - **China Exposure**: Continued focus on China exposure and its implications for revenue growth in 2026 remains a critical point for investors [9][26]. This summary encapsulates the key insights and financial expectations from the semiconductor industry and specific companies, highlighting potential investment opportunities and risks.

Core Viewpoint - Camtek (CAMT) is currently rated as a Zacks Rank 5 (Strong Sell) despite having recently exceeded the Zacks Consensus Estimate for earnings [1] Company Overview - Camtek Ltd. specializes in developing and manufacturing high-end inspection and metrology equipment for the semiconductor industry, including inspecting integrated circuits and measuring features on wafers during the production process [2] Earnings History - Camtek has consistently beaten the Zacks Consensus Estimate in each of the last four quarters, reporting an EPS of $0.82 against a consensus of $0.80 in the most recent quarter [4] Earnings Estimates - Recent trends show that annual earnings estimates for the next fiscal year have decreased from $3.52 to $3.35 over the last 60 days, while the current fiscal year consensus has slightly improved from $3.18 to $3.21 [5] - The negative movement in earnings estimates is a significant factor contributing to Camtek's Zacks Rank of 5 (Strong Sell) [5] Market Context - A broader trend indicates that many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a decline in their rankings [6]

Company Performance - Camtek (CAMT) closed at $106.35, reflecting a -2.08% change from the previous day, underperforming the S&P 500, which fell by 0.74% [1] - Over the past month, Camtek's shares have decreased by 2.07%, while the Computer and Technology sector gained 0.14% and the S&P 500 increased by 0.79% [2] Earnings Expectations - Analysts anticipate Camtek will report earnings of $0.83 per share, indicating a year-over-year growth of 7.79%. Revenue is expected to reach $127.21 million, up 8.46% from the same quarter last year [3] - For the full year, earnings are projected at $3.21 per share and revenue at $495.14 million, reflecting increases of +13.43% and +15.36% respectively from the previous year [4] Analyst Sentiment - Recent revisions to analyst estimates for Camtek suggest positive sentiment regarding the company's business and profitability, as these revisions are correlated with near-term share price momentum [5][4] - Camtek currently holds a Zacks Rank of 3 (Hold), with a recent 0.14% rise in the Zacks Consensus EPS estimate [6] Valuation Metrics - Camtek's Forward P/E ratio stands at 33.86, which is lower than the industry average of 44.66 [6] - The company has a PEG ratio of 2.17, compared to the industry average PEG ratio of 2.06 [7] Industry Context - The Electronics - Measuring Instruments industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 108, placing it in the top 44% of over 250 industries [8]

Core Insights - Camtek is a technology company focused on advanced inspection and metrology solutions for the semiconductor industry, supporting next-generation packaging and manufacturing processes [1] - The company reported record third-quarter revenue of $126 million, a 12% increase year over year, and expects full-year revenue of approximately $495 million, which is about 15% higher than last year's figures [5] Company Performance - Camtek's shares were priced at $109.14, reflecting a 30% increase over the past year, significantly outperforming the S&P 500, which rose about 15% in the same period [2] - The company has non-GAAP operating margins near 30%, indicating strong operational efficiency [5] Market Activity - First Wilshire Securities Management sold 81,598 shares of Camtek during the third quarter, reducing its stake to 206,424 shares valued at $21.68 million, representing a 1.94% shift in the fund's total reportable assets under management [3][4] - The reduction in stake is viewed as a rational risk management strategy rather than a loss of confidence in Camtek's performance [6] Growth Drivers - Demand for AI-driven advanced packaging is identified as the core growth engine for Camtek, contributing to its strong revenue performance [5] - The company is well-positioned as a key supplier to leading chip manufacturers globally, leveraging its proprietary hardware and software platforms for high-precision inspection capabilities [1]

Core Viewpoint - Camtek's stock performance has been relatively weak compared to major indices, but it has shown resilience over the past month with a positive trend in share price [1][2]. Financial Performance - Upcoming financial results are expected to show an EPS of $0.83, reflecting a 7.79% increase year-over-year, with projected revenue of $127.21 million, up 8.46% from the same quarter last year [3]. - For the full year, earnings are projected at $3.21 per share and revenue at $495.14 million, indicating increases of 13.43% and 15.36% respectively compared to the previous year [4]. Analyst Sentiment - Recent upward revisions in analyst estimates suggest a positive outlook for Camtek's business operations and profitability [5]. - The Zacks Rank system currently rates Camtek as 3 (Hold), with a slight increase of 0.14% in the consensus EPS projection over the past 30 days [7]. Valuation Metrics - Camtek is trading at a Forward P/E ratio of 32.15, which is lower than the industry average of 42.39, indicating a potential discount [8]. - The company has a PEG ratio of 2.06, compared to the industry average of 1.97, suggesting that while the stock may be undervalued based on P/E, it is slightly higher when considering growth expectations [9]. Industry Context - The Electronics - Measuring Instruments industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 99, placing it in the top 41% of over 250 industries, indicating strong performance potential [10].