Spotting Winners: Applied Materials (NASDAQ:AMAT) And Semiconductor Manufacturing Stocks In Q4

The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Applied Materials (NASDAQ:AMAT) and the rest of the semiconductor manufacturing stocks fared in Q4.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.4% while next quarter's revenue guidance was 5.6% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 6.9% on average since the previous earnings results.

Applied Materials (NASDAQ:AMAT)

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Applied Materials reported revenues of $6.71 billion, down 0.5% year on year, topping analyst expectations by 3.4%. It was a strong quarter for the company, with an impressive beat of analysts' revenue and EPS estimates.

“Applied Materials delivered strong results in the first quarter of fiscal 2024 and has outperformed our markets for the fifth consecutive year,” said Gary Dickerson, President and CEO.

The stock is up 9.3% since the results and currently trades at $205.13.

Is now the time to buy Applied Materials? Access our full analysis of the earnings results here, it's free.

Best Q4: Nova (NASDAQ:NVMI)

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $134.2 million, down 11.3% year on year, outperforming analyst expectations by 4.8%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.

The stock is up 13.1% since the results and currently trades at $178.1.

Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Kulicke and Soffa (NASDAQ:KLIC)

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $171.2 million, down 2.9% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is up 0.4% since the results and currently trades at $50.47.

Read our full analysis of Kulicke and Soffa's results here.

KLA Corporation (NASDAQ:KLAC)

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $2.49 billion, down 16.7% year on year, surpassing analyst expectations by 1.1%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter. On the other hand, KLA Corporation exceeded analysts' revenue and EPS expectations. 

The stock is up 7.3% since the results and currently trades at $688.93.

Read our full, actionable report on KLA Corporation here, it's free.

Entegris (NASDAQ:ENTG)

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $812.3 million, down 14.1% year on year, surpassing analyst expectations by 4%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is up 11.4% since the results and currently trades at $138.32.

Read our full, actionable report on Entegris here, it's free.

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