#1 - Applied Materials (NASDAQ:AMAT)
Applied Materials - Semiconductor chips are the engines that will power 5G devices. And that power will allow those devices to deliver data 10 times faster than 4G networks. With that in mind, it would make sense to invest in the company that helps build the engines. And that brings us to Applied Materials (NASDAQ:AMAT). Semiconductor companies are already racing to build the next generation of chips to support 5G. And that puts AMAT in an ideal position to capitalize.
For investors who put a value in such things, Applied Materials is the leading semiconductor fabrication tool supplier. And analysts believe that the company’s revenue will increase by 12.5% year-over-year in 2020. This would virtually erase the 13% drop in the company’s top line in fiscal 2019. As evidence of this turnaround, the company is forecasting a 9% increase in sales for the current quarter ($4.1 billion vs. $3.75 billion) on a year-over-year basis.
And the gains from 5G do not appear to be factored into the AMAT stock price which is trading at 16 times forward earnings estimates.
About Applied Materials
Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.
Read More - Current Price
- $229.97
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $219.04 (4.8% Downside)
