orders exceeded supply for March, April and May 2012
SEMI, the North American Semiconductor Equipment Industry, reports that equipment orders exceeded supply for March, April and May 2012, at book-to-bill ratios of 1.12, 1.10 and 1.05 respectively. Applied Materials (NASDAQ: AMAT), the leading semiconductor chip-making equipment company, is taking full advantage of this industry upturn. The company has developed chip-making equipment that builds chips in a pyramid stair-step configuration to hold a terabyte of information, which is equal to 1,000 gigabytes. Applied Materials sells this chip making equipment to companies like Intel (NASDAQ: INTC).
Applied Materials has strong financials with cash of $2.17 billion exceeding their debt of $1.95 billion. The company has a trailing P/E of 10.3 and a future P/E of 9.93, making it a relatively inexpensive stock. The stock closed on Friday at $10.51 per share.