Barrons has a short piece on AMAT. AMAT's core business is capital equipment used in the production of silicon wafer computing chips. They are the world's largest. About a year ago they announced that they were going to introduce capital equipment to produce solar cell wafers. This business is really starting to become a significant part of their business. The $1.9B order described below is the single largest order ever in the company's history.
"March 10, 2008, 12:54 pm
Applied Materials: 2008 Could Be Huge For Solar Unit
Posted by Eric Savitz
Applied Materials (AMAT) could sign as much as $5 billion to $6 billion in contracts for solar cell manufacturing equipment in 2008, J.P. Morgan’s Jay Deahna asserts.
Last week, he notes, the company disclosed a $1.9 billion contract for solar manufacturing equipment and services. That deal alone is more than twice the roughly $900 million in solar contracts the company signed in 2007. Deahna thinks the company can get the total for this year over $5 billion with contracts from new customers in India and Europe, plus follow-on orders from existing customers.
Deahna today upped his price target on the stock to $28 from $22. “We see substantial stock price upside on potentially rapid ‘09 and ‘10 growth assuming solid execution/increased confidence in solar, completion of the re-org in silicon systems plus the likelihood of improving semi cap ex later in 2008 and into 2009,” he writes."
AMAT is up 1.3% today as I post this and up 7.6% since they announced booking the order on March 4.
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