Applied Materials: Steady Play in Semiconductor Super Cycle

2 months ago

Chris Marutch

"Yeah, the second name I have on my list is um Applied Materials. This is a semiconductor company and a quiet little powerhouse with a free cash flow yield of 3.07. It has exposure to chip fabrication, foundry equipment and materials engineering, which are all critical for AI and data centers. Despite $1.4 billion used in buybacks and dividends last quarter, the company aims to deliver 80% to 100% of its free cash flow to shareholders over time. If you believe we are still in the early stages of a semiconductor super cycle, then Applied Materials is one that value and income investors should watch."

The commentary on Applied Materials emphasizes its stable free cash flow and strategic exposure to semiconductor equipment amid an ongoing super cycle. The speaker suggests that long-term value and income investors could benefit from the company's fundamentals despite near-term earnings anticipation.

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