Trefis expects the revenues from Applied Materials (NASDAQ:AMAT) Silicon Systems business – which sells equipment used to manufacture semiconductor products such as microprocessors and memory – to rise from $11.4 billion in 2020 to about $15 billion in 2021 and $17 billion in 2022.
Demand for semiconductors has significantly outstripped supply through Covid-19, causing producers to double down on their capital expenditure plans. This is likely to help Applied Materials.
AMAT stock has outperformed the market, rising from around $60 per share to about $140 over the last 12 months. As the capex cycle picks up, we think the stock could rise further.
While automakers and consumer electronics players have been impacted by the semiconductor supply crunch, there are several companies that are benefiting from the situation. Our theme on Stocks That Benefit From The Semiconductor Shortage has more details.
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