With the arrival of the second quarter and the influx of earnings from the first quarter, many on Wall Street began to look for the best way for the rest of 2021. One industry that seems to be a sure winner is semiconductor capital equipment, and this is for good reason. In recent months, Goldman Sachs has raised its estimates for wafer manufacturing equipment (WFE) for the third time in recent months, which are used to manufacture and process semiconductors. machine. Goldman Sachs predicts that the market will grow by 22% and 10% year-on-year in 2021 and 2022. Sales in 2021 will reach US$71 billion, and sales in 2022 will reach US$78 billion. The analyst revised the price target, and the research report stated: We have updated our estimates and 12-month price targets for the coverage of semiconductor capital equipment and semiconductor materials, because we have considered recent industry inspections (that is, generally positive) and improved WFE Market outlook. Please note that our updated estimates are largely higher than FactSet’s consensus, as the market digests the first quarter of 2021 earnings season and positive data points related to customer spending (ie, continued tight supply and increasing A lot of evidence shows that government support continues to increase, etc.).
We have updated our estimates and 12-month price targets for the coverage of semiconductor capital equipment and semiconductor materials, as we have taken into account recent industry inspections (ie, generally optimistic) and improved WFE market prospects. Please note that our updated estimates are largely higher than FactSet’s consensus, as the market digests the first quarter of 2021 earnings season and positive data points related to customer spending (ie continued tight supply, more and more evidence Indicates that government support is increasing, etc.).
Goldman Sachs has four top stocks rated as buys, and they are very attractive supplements for active growth investors who want to increase their positions in this fast-growing industry. Remember, a single analyst report should not be used as the sole basis for any buying or selling decision.
This is the premier semiconductor capital equipment stock. Applied Materials Inc. (NASDAQ: AMAT) provides manufacturing equipment, services and software for the semiconductor, display and related industries. It operates through three parts.
The Semiconductor System Division develops, manufactures and sells various manufacturing equipment used to manufacture semiconductor chips or integrated circuits. The department also provides various technologies including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal , And measuring and testing tools.
The Applied Global Services division provides integrated solutions to optimize the performance and productivity of equipment and fabs, including spare parts, upgrades, services, early remanufacturing equipment, and factory automation software for semiconductors, displays, and other products.
The Display and Adjacent Market Division provides products used in the manufacture of liquid crystal displays, organic light-emitting diodes and other display technologies for use in televisions, monitors, notebook computers, personal computers, electronic tablets, smart phones and other consumer-oriented devices, and Flexible substrates for processing equipment.
Investors receive only 0.72% dividends. Goldman Sachs raised its target price from US$133 to US$151. The consensus target on Wall Street is $133.75. Applied Materials' stock price fell this month and recently fell below $134 per share.
In the past year, this outstanding mid-cap stock has attracted some very solid insiders to buy. Entegris Inc. (NASDAQ: ENTG) is dedicated to the development, manufacturing and supply of special materials for the microelectronics industry.