This Cheap Semiconductor Stock Could Be on the Verge of a Turnaround
Semiconductor stocks are having a great run on the market in 2023, which is evident from the 41% jump in the PHLX Semiconductor Sector index, and this explains why shares of Applied Materials (NASDAQ: AMAT) have shot up 53% this year despite a decline in the company's revenue and earnings.
The company, known for supplying semiconductor manufacturing equipment to chipmakers and foundries, has struggled due to a big decline in spending in this industry. Gartner estimates that spending on semiconductor capital equipment could decline 22.5% in 2023 to $136 billion, as chipmakers have been pulling back spending on account of an oversupply and a weak macroeconomic scenario.
However, Applied Materials' fiscal 2023 third-quarter results (for the three months ended July 30, 2023), which were released on Aug. 17, suggest that the semiconductor glut may be easing. Let's see why that may be the case.
Source Fool.com
