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One thing you missed is the services side of their business. With all these complex machines and high chip demand, customers of AMAT need increasing amounts of machine servicing. Growing at a double digit rate with more customers signing up for longer contract periods. Nice source of recurring revenue
I dunno. I’m low-info in this space, so I just see sorta basic things such as lam having a higher P/E ratio and being more focused on one type of chip making, so maybe higher risk and reward?
I like the "pivot story" Nick. When I used to work for a manufacturing company during the pandemic, we had to pivot from our regular product to one that was deemed "essential" during the crisis. We were never busier. I hope this ends up being a good analogy... IMO flexibilty is good.
It isn't all that different of an effect, is it? Chips are a manufacturing industry, do we agree that ability to adapt dynamically to demand is really important!
@@hackerhate7Aehr is more testing. Their edge is that they can supply chipmakers with the fancy equipment for screening for duds… in a way that is better than competitor fancy equipment… due to higher voltages (needed for testing GaN or SiC) and due to testing at the wafer level and testing many wafers simultaneously. Like… more efficient to test the whole wafer before slicing it into chips… and doing plots of wafers in one machine uses less floor space… and we’re talking hyper expensive “clean room” floor space
Thanks. This is an incredible insight for Nic and Kasey. I'm overweighted AMAT; I nibbled the entire year at a cost per share that is now fairly valued. An important lesson learned is being patient, and that continues to come up. I'll do better next year. This might be my favorite SME company. I want a CSI workout shirt (Lululemon material). Are there any chances? 😅
I don’t think it’s helpful to say “all the manufacturers” As Chinese automakers take market share from legacy automakers, we’re seeing some Chinese makers continuing to increase sales while others are still… struggling might be an understatement. Onsemi products were in over half of new models shown at the biggest auto show in China, which happened back in April. So chipmakers like that might be a little less risky than betting on specific automakers
@@SigFigNewton Tesla laying off 10% of its manufacturing employees and so are the big 3 here is America, Chrysler/Ford/GM. That's all that is pertinent to the demand for chips.
@@darrenhere5856 -Nonamerican automakers exist -layoffs are a bit of a lagging indicator. When a downturn is economy-wide, they happen in the recession rather than before it. In the recession is historically a buying opportunity. -global EV sales are higher than they were a year ago. Some chips are mostly for EVs
👉👉 Chip Stock Investor offers a premium membership that gives you:
Community: 🙏 Connect with other investors interested in chip (and everything else) stocks.
Direct Access: 🗣🦜Chat with the Chip Stock Investor experts Nick and Kasey.
Insider Knowledge: 🤔💭Gain valuable insights into the market.
Resources: 📕📖📑Download show notes and access exclusive content.
Join us: ko-fi.com/chipstockinvestor
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I paid for your membership,and still can’t access your discord yet. Please confirm
@@ThiagoKentucky Hi Thiago, have you connected you're Discord account with your TH-cam account?
One thing you missed is the services side of their business. With all these complex machines and high chip demand, customers of AMAT need increasing amounts of machine servicing. Growing at a double digit rate with more customers signing up for longer contract periods. Nice source of recurring revenue
AGS is a great segment and story for Applied. We covered that in past videos. We like it.
What portion of their revenues might be said to be recurring
Excellent analysis.
The hat is back👍
The hat rocks!
$AMAT ..... ❤🔥💥
Post ASML update for AMAT & LCRX? Thanks
How is Lam-Stock in compare to Applied Materials?
I dunno. I’m low-info in this space, so I just see sorta basic things such as lam having a higher P/E ratio and being more focused on one type of chip making, so maybe higher risk and reward?
I like the "pivot story" Nick. When I used to work for a manufacturing company during the pandemic, we had to pivot from our regular product to one that was deemed "essential" during the crisis. We were never busier. I hope this ends up being a good analogy... IMO flexibilty is good.
It isn't all that different of an effect, is it? Chips are a manufacturing industry, do we agree that ability to adapt dynamically to demand is really important!
Pivoted to hand sanitizer?
@@SigFigNewton Nope we pivoted to help supply the people making the N95 masks
@@fivedeadlyvenoms1 nice
Well, thanks for contributing!
I opened a position in AMAT on the last selloff, glad you guys have the same conviction!
Nice one Brian!
Back down at 180 …
What stocks should I look at regarding advanced packaging equipment?
Why not AMAT? It's the leader
AEHR
@@hackerhate7Aehr is more testing.
Their edge is that they can supply chipmakers with the fancy equipment for screening for duds… in a way that is better than competitor fancy equipment… due to higher voltages (needed for testing GaN or SiC) and due to testing at the wafer level and testing many wafers simultaneously. Like… more efficient to test the whole wafer before slicing it into chips… and doing plots of wafers in one machine uses less floor space… and we’re talking hyper expensive “clean room” floor space
Why we cant exceed 200??
Thanks. This is an incredible insight for Nic and Kasey. I'm overweighted AMAT; I nibbled the entire year at a cost per share that is now fairly valued. An important lesson learned is being patient, and that continues to come up. I'll do better next year. This might be my favorite SME company. I want a CSI workout shirt (Lululemon material). Are there any chances? 😅
Good lessons you can pass on to other investors, Shannon!
You know anyone at Lululemon product dev???
@@chipstockinvestor I wish. I'm in Vietnam now; maybe we can source some material here?
Lol sure! Pretty sure Lulu sources some material from there!
I'm really struggling with a company that couldn't find a better name than "Applied Materials".
yeah...I could not sleep at night about that😂...."a rose by any other name is still a rose"
There were no awards given back in the 70s for creative naming, unfortunately! Lol
Old tech be like we are naming our company “Digital Equipment Company” or Digital for short.
Almost gives me “no-nonsense materials engineers please apply” vibes
how can auto be coming out of a downturn when all the manufacturers are laying people off ?
Perhaps not coming out of a downturn, but "bottoming" as we listed in the end market table.
I don’t think it’s helpful to say “all the manufacturers”
As Chinese automakers take market share from legacy automakers, we’re seeing some Chinese makers continuing to increase sales while others are still… struggling might be an understatement.
Onsemi products were in over half of new models shown at the biggest auto show in China, which happened back in April. So chipmakers like that might be a little less risky than betting on specific automakers
@@SigFigNewton Tesla laying off 10% of its manufacturing employees and so are the big 3 here is America, Chrysler/Ford/GM. That's all that is pertinent to the demand for chips.
@@darrenhere5856 there is a lot of additional relevant info
@@darrenhere5856 -Nonamerican automakers exist
-layoffs are a bit of a lagging indicator. When a downturn is economy-wide, they happen in the recession rather than before it. In the recession is historically a buying opportunity.
-global EV sales are higher than they were a year ago. Some chips are mostly for EVs