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Investment Thesis
While the market chases Nvidia and AMD, the real AI hub is upstream: without deposition, etch, and CMP, those chips aren't even born. And Applied Materials (AMAT) is the supplier that sets the
Applied Materials: Everyone Looks At Nvidia, But Chips Must Be Built First
Summary
- Applied Materials is the backbone of chip manufacturing, dominating deposition, etch, and CMP—critical for AI chip production and industry innovation.
- The stock is undervalued, with demand recovering as foundries like TSMC ramp up orders for next-gen AI and high-performance chips.
- Earnings are solid, guidance is stable, and catalysts like China export reopening and AI-driven demand are not yet fully priced in.
- I rate AMAT a strong buy with a $210 target, offering 8.7–21% upside, strong cash flow, and leadership in a pivotal tech cycle.
Hi there, and welcome to my profile.I’m a finance professional with over a decade of experience across global markets, with a deep focus on macroeconomic analysis, portfolio management, and equity research. I currently serve as a Senior Analyst at a European asset management firm, where I lead multi-asset strategies and manage equity portfolios. My approach combines top-down macro insights with bottom-up stock selection, with particular attention to economic cycles, monetary policy, and systemic risks.While I specialize in growth stocks, I bring a broad perspective across all equity styles. My research is grounded in fundamentals and supported by daily use of Bloomberg Terminal, advanced Excel models, and quantitative tools for valuation, risk monitoring, and sector analysis.On Seeking Alpha, my goal is to share high-conviction ideas, often focusing on undercovered names, contrarian opportunities, and the geopolitical and macro forces that shape capital flows. I write with both retail and institutional investors in mind—striving to deliver analysis that is rigorous, strategic, and actionable.I believe in transparency, clarity, and continuous learning. In a world of noise, I aim to provide signal.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMAT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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