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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (16561)	8/18/2023 8:49:07 AM
From: Kirk ©	1 Recommendation Recommended By Return to Sender Read Replies (1) \| Respond to of 26744

This positive article uses the "B Word" Applied Materials rises as Wall Street praises strength in trailing edge nodes Aug. 18, 2023 8:22 AM ET By: Chris Ciaccia, SA News Editor Applied Materials (NASDAQ:AMAT) shares rose in pre-market trading on Friday after it reported stronger-than-expected quarterly results and guidance, resulting in several Wall Street analysts praising the company's strength in mature products. Morgan Stanley analyst Joseph Moore, who has an equal-weight rating on Applied Materials (AMAT), said the strength in trailing edge logic, or ICAPS, has been the "story" for the company this year. However, the surge in DRAM spending was surprising, even if Moore believes it may not be sustainable. Bard says: What is Icaps Applied Materials? Applied's ICAPS (IoT, Communications, Automotive, Power and Sensors) group provides materials engineering solutions to customers in these growing markets. Jun 16, 2022 "While equipment has generally been better than feared this earnings cycle, Applied has not seen a meaningful decline in quarterly revenue from the peak level, in sharp contrast to peers," Moore wrote in an investor note, referencing Lam Research (LRCX), KLA Corp. (KLAC) and others. Moore, who raised his price target to $139 from $125 after the results, added that while the company underperformed last year due to supply constraints, - making comparisons easier this year - Applied is still executing well, especially in ICAPS, and the company's strong position in China and trailing edge are "major factors." Applied Materials (AMAT) said that revenue from foundry and logic accounted for 79% of quarterly sales, up from 66% in the year-ago quarter. Revenue from dynamic random access memory and flash accounted for 17% and 4%, respectively, compared to 15% and 19% in the year-ago period. J.P. Morgan analyst Harlan Sur, who has an overweight rating on Applied Materials, raised his price target after the results, moving to $165 from $145 and said he believes the company will outpace the wafer fab equipment market due to "healthy exposure" in foundry and logic. And while memory spending is still going through fits and starts, Sur said the results may indicate that the memory business has "bottomed" ahead of improving trends next year and the company may benefit from new technologies, such as gate-all-around and advanced packaging. "Overall, we believe Applied is well-positioned to benefit from multiple upcoming technology inflections that should drive outperformance vs [wafer fab equipment market] over the next several years," Sur wrote in an investor note. Looking ahead, Applied (AMAT) said it expects net sales to be approximately $6.51B, plus or minus $400M in the fourth-quarter, with adjusted earnings between $1.82 and $2.18 per share. KeyBanc Capital Markets analysts, led by Steve Barger, were a bit more cautious, noting that while the strong guidance is indicative of Applied's (AMAT) strength in ICAPs and China, it could face some near-term issues around memory, particularly NAND. seekingalpha.com

To: robert b furman who wrote (16561)	8/23/2023 11:09:52 AM
From: Kirk ©	3 Recommendations Recommended By berniel Return to Sender rogermci® Respond to of 26744

The market seems to like the PMI data, perhaps because higher inflation and high interest rates are killing demand. pmi.spglobal.com Commenting on the data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “A near-stalling of business activity in August raises doubts over the strength of US economic growth in the third quarter. The survey shows that the service sector led acceleration of growth in the second quarter has faded, accompanied by a further fall in factory output. “Companies report that demand is looking increasingly lethargic in the face of high prices and rising interest rates. A resultant fall in new orders received by firms in August could tip output into contraction in September as firms adjust operating capacity in line with the deteriorating demand environment. Hiring could likewise soon turn into job shedding in the coming months after anear-stagnation of employment in August. “Rising wage pressures as well as increased energy prices have meanwhile pushed input cost inflation higher, which will raise concerns over the stickiness of consumer price inflation in the months ahead. One upside is that weak demand is starting to limit pricing power, which should help keep a lid on inflation around the 3% mark.” I believe airline pilots and UPS drivers are happy with the higher salaries from the skilled labor shortage.