Jefferies’ Top Crowded Semiconductor Long Positions: Top 10 Stocks

6. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders In Q2 2024: 77

Shares Short % Of Outstanding: 1.97%

Applied Materials, Inc. (NASDAQ:AMAT) is a semiconductor manufacturing equipment firm whose products are used in chip manufacturing and production optimization. This makes the firm one of the most important in the world since increased AI spending and geopolitical tensions have placed media, investors, and government spotlight sharply on firms that make and sell chipmaking equipment. That said, Applied Materials, Inc. (NASDAQ:AMAT) has felt the pinch and its China revenue dropped to 32% of total fiscal Q3 sales from the previous quarter’s 43%. This also led to muted investor reaction to the overall earnings release as Applied Materials, Inc.’s (NASDAQ:AMAT) shares dipped by 2.8% in after-hours although its quarterly revenue of $6.78 billion beat analyst estimates of $6.67. Part of the bearishness stems from the weak status of the memory industry, but over the long term, the introduction of new manufacturing technologies and techniques such as 18A, 2 nanometers, gate all around (GAA) position Applied Materials, Inc. (NASDAQ:AMAT) well to benefit from the industry’s upcycles.

Parnassus Investments mentioned Applied Materials, Inc. (NASDAQ:AMAT) in its Q2 2024 investor letter. Here is what the fund said:

Applied Materials is the world’s largest supplier of wafer fabrication technologies used in semiconductor manufacturing. The company reported solid earnings for the quarter, and investors believe Applied Materials should continue to benefit from accelerated industry spend due to AI and share gains.”