Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Applied Materials has delivered strong performance in the second quarter of 2024, and is well positioned to benefit from long-term secular growth trends.</li><li>Key technology innovations reshaping the global economy such as artificial intelligence (AI), internet of things (IoT), and electric and autonomous vehicles are underpinned by semiconductors, potentially driving demand for more chip manufacturing capacity and fostering superior chips with improved energy efficiency.</li><li>Notably, significant inflections, key to the semiconductor roadmap, are facilitated by Applied Materials and are likely to promote its outperformance as next-generation chip technologies advance into large-scale production.</li></ul>

Applied Materials has delivered strong performance in the second quarter of 2024, and is well positioned to benefit from long-term secular growth trends.Key technology innovations reshaping the global economy such as artificial intelligence (AI), internet of things (IoT), and electric and autonomous vehicles are underpinned by semiconductors, potentially driving demand for more chip manufacturing capacity and fostering superior chips with improved energy efficiency.Notably, significant inflections, key to the semiconductor roadmap, are facilitated by Applied Materials and are likely to promote its outperformance as next-generation chip technologies advance into large-scale production.

Applied Materials Inc.: Advanced Packaging and High-bandwidth Memory (HBM) Growth & Other Major Drivers

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>AMAT Q124 revenues of $6.65 billion, in line with guidance and essentially flat both QoQ and YoY. Current quarter guidance also flat sequentially</li>
<li>WFE valuations are at all time record highs while revenues remain on life support from China</li>
<li>If China revenues fall off before non-China returns to growth, the WFE segment could be in for a world of pain.</li>
</ul>


AMAT Q124 revenues of $6.65 billion, in line with guidance and essentially flat both QoQ and YoY. Current quarter guidance also flat sequentially
WFE valuations are at all time record highs while revenues remain on life support from China
If China revenues fall off before non-China returns to growth, the WFE segment could be in for a world of pain.


AMAT. No Beat, No Raise, No Slump. But Why?

<ul><li>Applied Materials delivered a decent result and the management claims to have made a strong start to the current fiscal year, exceeding its earnings projections.</li><li>Strengths identified include the company's innovation strategy and position at key industry inflections, such as new-foundry logic and developments in its DRAM market where it has captured over 50% of market share.</li><li>Revenue from its advanced packaging product portfolio is predicted to reach nearly $1.5 billion in 2024.</li></ul>

Applied Materials delivered a decent result and the management claims to have made a strong start to the current fiscal year, exceeding its earnings projections.Strengths identified include the company's innovation strategy and position at key industry inflections, such as new-foundry logic and developments in its DRAM market where it has captured over 50% of market share.Revenue from its advanced packaging product portfolio is predicted to reach nearly $1.5 billion in 2024.

Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? - Major Drivers

<ul>
<li>Q124 revenues of $6.71 billion, at the high end of the guided range and essentially flat sequentially both QoQ and YoY</li>
<li>Q224 revenue $6.5 billion at the midpoint, a modest downward movement of 3% QoQ and in line with what we saw from peers KLAC and LRCX</li>
<li>Still a great company with excellent growth prospects, just not in 2024</li>
</ul>


Q124 revenues of $6.71 billion, at the high end of the guided range and essentially flat sequentially both QoQ and YoY
Q224 revenue $6.5 billion at the midpoint, a modest downward movement of 3% QoQ and in line with what we saw from peers KLAC and LRCX
Still a great company with excellent growth prospects, just not in 2024


AMAT. Post Earnings Surge For No Good Reason

<ul><li>Applied Materials, Inc. delivered an all-around beat in the previous quarter.</li><li>Applied Materials expanded its footprint in IoT, communications, auto, power, and sensor sectors, enhancing its ICAPS business with new products and application wins.</li><li>They anticipate semiconductor growth surpassing GDP, the wafer fab equipment market expanding as fast or faster than semiconductors, Applied outperforming the wafer fab equipment market, and their service business growing with or surpassing equipment sales.</li></ul>

Applied Materials, Inc. delivered an all-around beat in the previous quarter.Applied Materials expanded its footprint in IoT, communications, auto, power, and sensor sectors, enhancing its ICAPS business with new products and application wins.They anticipate semiconductor growth surpassing GDP, the wafer fab equipment market expanding as fast or faster than semiconductors, Applied outperforming the wafer fab equipment market, and their service business growing with or surpassing equipment sales.

Applied Materials Inc.: Market Dynamics and ICAPS Business Outlook! - Major Drivers

United States

QUALCOMM, Inc . manufactures digital wireless communications equipment.  The Company licenses its code division multiple access (CDMA) and orthogonal frequency division multiplexing access intellectual property to other companies, and produces CDMA-based integrated circuits; and produces equipment and software used to track workers and assets; and software for wireless content enablement.

KLA-Tencor Corporation manufactures yield management and process monitoring systems for the semiconductor industry.  The Company's systems are used to analyze product and process quality at critical steps in the manufacture of circuits and provide feedback so that fabrication problems can be identified. KLA-Tencor operates sales, service, and application centers worldwide.

Lam Research Corporation manufactures, markets, and services semiconductor processing equipment used in the making of integrated circuits.  The Company's products are used to deposit special films on a silicon wafer and etch away portions of various films to create a circuit design.  Lam sells its products around the world.

Monolithic Power Systems Inc specializes in high-performance, integrated power solutions. The Company provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications.

ON Semiconductor Corporation supplies analog, standard logic, and discrete semiconductors for data and power management. The Company's products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

Microchip Technology Incorporated designs, manufactures, and markets microcontrollers, related mixed-signal and memory products, and application development systems for high-volume embedded control applications. The Company also designs, develops, and markets linear/mixed-signal, power management, and thermal management products.

Entegris Inc. provides materials management products and services to the microelectronics industry on a worldwide basis.  The Company provides products such as wafer shippers, wafer transport and process carriers, pods, and work-in-process boxes.  Entegris also provides chemical delivery products such as valves, fittings, tubing, pipe, and containers.

Analog Devices, Inc. designs, manufactures, and markets integrated circuits used in analog and digital signal processing.  The Company's products are used in communications, computer, industrial, instrumentation, military/aerospace, automotive, and high-performance consumer electronics applications.  Analog Devices sells its products worldwide.

Teradyne, Inc. designs, manufactures, sells, and supports semiconductor test products and services on a world wide basis. The Company's test equipment products and services include: semiconductor test systems, military/aerospace test instrumentation and systems, circuit-board test and inspection systems and automotive diagnostic and test systems.

Tokyo Electron Limited manufactures and sells industrial electronics products, such as semiconductor manufacturing machines, computer system, and electronic components.  The Company products are sold in US, Taiwan, and others as well as in Japan.

ASE Technology Holding Co., Ltd. offers assembly and testing services. The Company provides outsourced assembly, semiconductor testing, semiconductor packaging, and other related services. ASE Technology Holding operates in Taiwan.

MediaTek Inc. is a fabless semiconductor company for wireless communications and digital multimedia solutions. The company provides SOC system solutions for wireless communications, high-definition TV, optical storage, DVD and Blu-ray products.

Lasertec Corporation develops, designs, manufactures and markets photomask inspection systems to make semiconductor devices, confocal scanning laser microscopes and liquid crystal display (LCD) inspection systems.

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

NXP Semiconductors NV operates as a global semiconductor company. The Company designs semiconductors and software for mobile communications, consumer electronics, security applications, in-car entertainment, and networking.  NXP offers its products to the automotive, identification, wireless infrastructure, lighting, mobile, and computing applications.

Semiconductor Manufacturing International Corporation operates a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

Semiconductor Manufacturing International Corp (SMIC)

DISCO CORPORATION manufactures abrasive and precision industrial machinery for cutting and grinding purposes.  The Company's products are applied in the semiconductor, electronics, and construction industries to produce consumer goods such as personal computers, digital cameras, video game systems, and Digital Video Disc (DVD) players.

Renesas Electronics Corporation researches, develops, designs and manufactures electronic components such as semiconductors and integrated devices.

SK Hynix Inc. provides products and services for the electronic components industry. The Company manufactures semiconductors, such as dynamic random access memory (DRAM), NAND flash memory, and static random access memory (SRAM) chips.

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

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Applied Materials (AMAT US)

Applied Materials Inc.: Advanced Packaging and High-bandwidth Memory (HBM) Growth & Other Major Drivers

Applied Materials has delivered strong performance in the second quarter of 2024, and is well positioned to benefit from long-term secular growth...

Baptista Research

AMAT. No Beat, No Raise, No Slump. But Why?

Q124 revenues $6.65 billion, in line & flat QoQ and YoY. Q224 guidance also flat QoQ. If China revenues fall before non-China grows, the WFE...

William Keating

Applied Materials Inc (AMAT): Is The Escalation In Services Growth A Major Growth Catalyst In 2024? - Major Drivers

Applied Materials delivered a decent result and the management claims to have made a strong start to the current fiscal year, exceeding its...

Baptista Research

AMAT. Post Earnings Surge For No Good Reason

Q124 revenues of $6.71 billion, flat both QoQ and YoY. Q224 revenue $6.5 billion, in line with peers. No full year 2024 guidance. WFE has more...

William Keating

Applied Materials Inc.: Market Dynamics and ICAPS Business Outlook! - Major Drivers

Applied Materials, Inc. delivered an all-around beat in the previous quarter. Applied Materials expanded its footprint in IoT, communications,...

Baptista Research

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