Multibagger #2 Applied Materials
Name: Applied Materials
Symbol: AMAT
Price: $197.4
Release Date: May 03, 2024
Forecast: 10-25X price growth in 5-10Years
Theme: EV, AI, Solar, Value Investing, Growth Investing
Story
Applied Materials supplies equipment, services and software for the manufacture of semiconductor chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products.
Expansions
Capacity Expansion Company is expanding its manufacturing facility in China coupled with New Products & New Territories expansions.
The expansions of 5G networks, electric smart vehicles & augmented virtual reality are creating huge waves of semiconductor demands in the industry. Applied Materials is positioned to gain from this growth.
Cloud Spending & AI infrastructure demand increase further boosts the business of the company. Regulations in Chinese imports channels existing businesses into Applied Materials.
Income Statement
The company is showing increased revenue, operating income & net income
Fundamentals, Valuations, Growth
| Parameter | Value | Legend |
|---|---|---|
| PE Ratio | 22 |  |
| PB Ratio | 9 |  |
| PEG Ratio | 1.3 |  |
| Debt Equity Ratio | 0.34 | |
| Sales Growth Rate | 5% | |
| Profit Growth Rate | 6% | |
| EPS Growth Rate | -20% | |
| Intrinsic Value Discount | 0% | |
| Economic Moat | Moderate | |
| Expansions | Yes | |
Threats & Risks
- Global Regulatory Compliances
- Cyber Security Threats
- Competition from biggies like NVidia
Summary
Based on the factors above company is having multibagger properties.