Is Applied Materials (AMAT) a Worthy Long-Term Stock?

Investment management company Vulcan Value Partners recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all trailed their benchmark indexes in 2022. In the fourth quarter, the fund’s Large-Cap Composite returned 8.2% net of fees and expenses, the Small Cap Composite returned 11.2% net, Focus Composite returned 7.6% net, the Focus Plus composite returned 7.7%, and All Cap Composite returned 7.2% net. You can check the top 5 holdings of the fund to know its best picks in 2022.

Vulcan Value Partners highlighted stocks like Applied Materials, Inc. (NASDAQ:AMAT) in the Q4 2022 investor letter. Headquartered in Santa Clara, California, Applied Materials, Inc. (NASDAQ:AMAT) provides material engineering solutions for semiconductors, display, and related industries. On February 9, 2023, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $116.08 per share. One-month return of Applied Materials, Inc. (NASDAQ:AMAT) was 5.34%, and its shares lost 16.95% of their value over the last 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $97.864 billion.

Vulcan Value Partners made the following comment about Applied Materials, Inc. (NASDAQ:AMAT) in its Q4 2022 investor letter:

“Applied Materials, Inc. (NASDAQ:AMAT) is the world’s largest producer of semiconductor manufacturing equipment. Throughout 2022, investors became increasingly concerned about a cyclical downturn in semiconductors and pending trade regulations that would restrict the sale of advanced semiconductor manufacturing equipment to Chinese customers. This uncertainty caused the stock to become oversold, in our opinion. The stock price recovered in the fourth quarter as investors were able to size the impact of export controls and, we believe, as investors increasingly understood the long-term, structural demand for semiconductors and the equipment that produces them.”

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Applied Materials, Inc. (NASDAQ:AMAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the third quarter, which was 67 in the previous quarter.

We discussed Applied Materials, Inc. (NASDAQ:AMAT) in another article and shared the list of tech stocks with low PE ratio. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.