Applied Materials (AMAT-Q)

Potential topping pattern. Could be the top of the recent strength. Would not recommend buying at this time. Wait for trend to reverse upwards. 

Still a decent runway ahead. 12-month price target of $258. Has built a moat around the wafer and fabrication side, over 50% market share. Buy it here around $198, another 1/3 in low $180s, and final 1/3 in low $170s.

Just reported, but shares dipped 2%. Reported guidance in-line. Maybe the market is worried over their sales in China, but nothing has changed overnight. It's case of shares being up nicely and are guiding conservatively. This is up 28% this year, so he's fine with it. Has $2 billion free cash flow last quarter reported and carries no net debt.

His pick. Let's see if demand broadens out.

Washington isn't pleased that they do so much business in China, which is a shame. This is a good company.

They just reported and shares jumped. AMAT is the largest semi-equipment-maker. Demand from China was very strong and the company expects that to continue. He owns a lot of semis shares and is bullish this sector.

Semi-conductor business competitive, but equipment companies in high demand. Likes this space. Sees further growth. If have profits, sell some stock. Wait for weakness before buying more shares. 

Supply to TSM. They "make the things that make the things". Demand for its products will increase with onshoring and increased complexity of technology. Yield is 0.7%.

Recent performance good for investors, but generally stays away from sector given cyclical nature of business. Would recommend selling on strength of share price. 

It's down 5% today on news. Their earnings were fine, but were overshadowed by the Department of Justice inquiry about AM allegedly selling restricted products to China. He won't sell because of the DOJ inquiry, because AM's performance has been strong.

They report Thursday. Shares soared on good news from Taiwan Semis about that company's revenues surging.

It has free cash flow generation given revenues without heavy leverage exposure. A quality name.

12-month price target of $156.60. International. Most recent earnings beat on top and bottom. Launching multi-billion dollar R&D platform, which is driving semiconductor innovation side. Yield is 0.93%.

You need their equipment to produce semi chips. Is up 37% YTD. This industry has been slumping lately, but Wall Street sees potential long term, fueled partly by the AI boom.

Is sticking with it. Trades at a 20% discount to [inaudible].