Is Applied Materials Stock a Buy?
A lot has changed since Applied Materials (NASDAQ: AMAT) kicked off its 2020 fiscal year with a rebound in sales after a U.S.-China trade war and memory chip market slump the year prior. This time around, it's COVID-19 that is proving to be a headwind for the company. Though shelter-in-place and work-from-home orders are causing a temporary spike in use of digital tools, supply chain issues have cropped up and the longer-term health of the global economy remains uncertain.
As for Applied, though, its business is on solid footing, and trends favoring its tech manufacturing services remain intact. In spite of question marks, shares are an even better value now than a few months ago after the company turned in another quarter of solid growth.
It's important to bear in mind that, as a supplier of equipment and services to semiconductor manufacturers, Applied's fortunes ebb and flow with the cycles inherent with any industrial company. Supply and demand isn't as stable as the service and subscription-based business models that have arisen in the tech world in recent years.
Source Fool.com
