Applied Materials Intrinsic Value – Applied Materials Leads the Way in Semiconductor Technology with FinFETs and Gate-All-Around Technologies.
February 15, 2023
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Applied Materials Intrinsic Value – Applied Materials ($NASDAQ:AMAT) is a global leader in the semiconductor technology industry. Applied Materials is committed to the development of innovative technologies that enable the production of the most advanced logic devices in the world. The transition from planar transistors to FinFET transistors at the 16nm process node has enabled semiconductor logic devices to achieve lower leakage, increased scalability, stronger drive currents, and faster switching times. FinFET manufacturing technology has been successful in scaling from 22-nm chips to 5-nm chips.
However, the gate-all-around process technology provides two distinct advantages over FinFETs. It allows for higher integration density and improved performance due to its 3D structure. This 3D structure allows for a much more efficient use of space than traditional planar transistors—allowing for faster switching speeds and greater power efficiency. Applied Materials is at the forefront of developing highly advanced FinFET and gate-all-around technologies, providing manufacturers with safer and more reliable solutions for their semiconductor chip production needs. Their advanced technology solutions are helping to increase yields, reduce cost, and improve the efficiency of semiconductor chip production.
Additionally, by providing these advanced solutions, Applied Materials is helping to ensure that their clients’ products remain competitive in an ever-changing industry. Their technologies are helping to revolutionize the semiconductor industry, allowing for higher yields, lower costs, and improved efficiency in semiconductor chip production.
Price History
Currently, news about this major advancement in semiconductor technology is mostly positive. On Tuesday, Applied Materials stock opened at $114.9 and closed at $118.4, up by 1.6% from its last closing price of 116.5. This indicates that the market is expecting great things from the company’s new innovations. These transistors can reduce power consumption while also increasing overall performance. Gate-All-Around technology is another breakthrough development that was recently introduced. This technology modifies traditional transistors to increase their performance and reduce power consumption without increasing their cost.
The semiconductor industry is undergoing a massive transformation due to these advancements in technology. The FinFETs and Gate-All-Around technologies are expected to revolutionize the industry and have a positive impact on both chipmakers and consumers. The products that are developed by applying these technologies can be more efficient, smaller, and faster than ever before. Applied Materials has been at the forefront of this innovation and is quickly becoming one of the top leaders in the semiconductor industry. With their commitment to developing groundbreaking technologies, they are sure to remain a leader in the industry for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Applied Materials. More…
| Total Revenues | Net Income | Net Margin |
| 25.79k | 6.53k | 25.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Applied Materials. More…
| Operations | Investing | Financing |
| 5.4k | -1.36k | -7.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Applied Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.73k | 14.53k | 14.03 |
Key Ratios Snapshot
Some of the financial key ratios for Applied Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.9% | 32.5% | 30.4% |
| FCF Margin | ROE | ROA |
| 17.9% | 40.5% | 18.3% |
Analysis – Applied Materials Intrinsic Value
GoodWhale has analyzed the financials of APPLIED MATERIALS and calculated its intrinsic value to be around $129.2. This is done by using the proprietary Valuation Line which takes into consideration factors like the company’s past performance, current performance, projected future performance, and other economic factors. After taking all these elements into account, GoodWhale has arrived at the conclusion that the intrinsic value of APPLIED MATERIALS is $129.2. Currently, APPLIED MATERIALS’s shares are trading at $118.4, which implies that the stock is undervalued by 8.3%. This indicates that investors may be able to benefit from buying the shares of the company at a discounted rate. Investors should take this opportunity to purchase the shares at the current price and potentially increase their return on investment. Overall, GoodWhale’s analysis of APPLIED MATERIALS’ financials show that the stock is undervalued and investors could take advantage of this opportunity. They should take into account GoodWhale’s calculations of APPLIED MATERIALS intrinsic value and consider buying the stock at its current price. With proper analysis, investors may be able to secure a higher return on their investment in the future. More…
Peers
Applied Materials, Inc. and its competitors, Lam Research Corporation, KLA Corporation, and ASML Holding NV, compete in the semiconductor equipment industry. This industry is capital intensive, with high barriers to entry. The four companies have similar business models, but Applied Materials has a slight edge in terms of market share.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is a company that manufactures semiconductor processing equipment. It is headquartered in Fremont, California, and has been in business since 1980. The company has a market capitalization of $51.81 billion as of 2022 and a return on equity of 54.63%. Lam Research Corporation is a leading supplier of wafer processing equipment to the semiconductor industry. The company’s products are used in the manufacturing of integrated circuits (ICs), which are the tiny electronic components that are found in everything from computers to cell phones. Lam Research Corporation’s products are used in all stages of IC production, from the initial deposition of materials on the wafer to the final etching of the completed circuits.
– KLA Corp ($NASDAQ:KLAC)
KLA Corp is a leader in process equipment and services for the semiconductor and nanoelectronics industries. The company has a market cap of $43.23 billion and a return on equity of 126.76%. KLA Corp provides products and services that enable the manufacturing of advanced semiconductor chips. The company’s products are used by customers in the fab process of making chips, including etching, metrology, and inspection. KLA Corp’s services enable customers to optimize their productivity and yield. The company has a strong history of innovation and is a trusted partner to the world’s leading chipmakers.
– ASML Holding NV ($NASDAQ:ASML)
ASML Holding NV is a technology company that manufactures semiconductor processing equipment, which is used in the production of integrated circuits (ICs). ASML’s products are used by customers in the computer, communications, and consumer electronics industries. The company has a market cap of 187.16B as of 2022 and a return on equity of 39.55%. ASML is headquartered in the Netherlands and has offices in Europe, the United States, Asia, and Japan.
Summary
Applied Materials is a leading semiconductor technology company that is paving the way for the future of the industry with its FinFETs and Gate-All-Around Technologies. Currently, the market for Applied Materials is trending positively, with analysts citing increased demand for their innovative technologies and products. Investors looking for a profitable opportunity should consider investing in Applied Materials as their strong market share and reputation for cutting-edge solutions make them a sound investment. With the digital economy booming and more applications relying on advanced semiconductor solutions, Applied Materials stands to benefit from further growth and success.
