Applied Materials stands to benefit from the strong growth of AI, IoT, and Big Data through at least 2025.
Strong demand is likely for semiconductors for storage, memory, and networking.
Applied Materials' equipment/services are likely to see increased demand as a result.
Applied Materials (AMAT) stands to be a likely beneficiary of the huge demand for semiconductors as a result of the growth of AI (artificial intelligence), IoT (Internet of Things), and Big Data markets. The company's customers are poised to experience increased demand for semiconductors. This creates the need for Applied Materials' semiconductor manufacturing equipment/services.
Applied Materials currently has about 18% market share in the semiconductor equipment market. This is expected to increase to 20% upon the completion of the Kokusai Electric acquisition which should close by mid-2020. AMAT's competitive advantage of having fully automated fabrication systems will help retain new customers and attract new ones. Customers benefit from AMAT's technology through increased manufacturing productivity and lower costs.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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