Applied Materials and Lam Research Rose on September 27
Applied Materials (AMAT), which is one of the global leaders in providing material engineering solutions for industries like semiconductors, panel display, solar photovoltaics, was the S&P 500’s second-highest gainer on September 27, 2017.
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Increased buying momentum in the industry along with strong guidance from Applied Materials pushed the stock higher on Wednesday. According to the announcement, Applied Materials expects EPS (earnings per share) of $5.08 in fiscal 2020. It’s a huge increase compared to analysts’ forecast of $3.21. Management announced an upbeat EPS forecast for 2020 based on the wafer fab equipment market, the higher outlook for computing demand due to increasing applications of big data, and artificial intelligence. The increased market share and the industry’s upbeat outlook are expected to improve Applied Materials’ margins and operating profit in the near future.
Applied Materials announced a $3 billion share buyback program in addition to the $995 million share buyback program announced previously. On September 27, Applied Materials rose 6.4% and closed the day at $48.84—the highest close since May 2000.
Lam Research (LRCX), which designs, manufactures, markets, and services semiconductor equipment, was one of the S&P 500’s top gainers on September 27.
Micron Technology’s (MU) upbeat outlook along with an increase in the capital expenditure boosted the semiconductor stocks especially the memory chip makers. With increased buying pressure in the semiconductor industry, the iShares PHLX Semiconductor ETF (SOXX) rose 2.42%, while the Philadelphia Semiconductor Index (SOX) rose 2.36%. Lam Research rose 5.9% and closed the day at $179.39—a new record high price level.
In the next part, we’ll discuss the S&P 500’s top losers on September 27.