News about AMAT

Applied Materials supplies equipment for more steps of chip manufacturing than most rivals, and the article says that breadth is the core of its case. Customers find it costly to switch because machines must be qualified and tuned to their processes, and selling many steps together gives the company deeper knowledge of each customer's process. Its operating margin of 33.74% and return on equity of 41.07% are cited as consistent with a strong position. The article identifies pressures: the most advanced patterning step is controlled by a single Dutch company that Applied does not compete with, a few large chipmakers can push hard on price, and government export rules decide which customers it may sell to. Applied trades at 23.42 times next year's expected earnings after rising 88.83% over twelve months.