The leading manufacturer of equipment for the production of chips and displays based on semiconductors, Applied Materials, reported for the first quarter of fiscal year 2023. The reporting period ended on January 29. The data turned out to be strong, and there is something to pay attention to:

• revenue +7.5% YoY to $6.74 billion;
• EPS +7.4% to $2.03 per share.

Both indicators were higher than consensus forecasts.

Applied Materials maintains a fairly stable position due to its reliance on a low debt burden in comparison with competitors and the ability to generate significant cash flows.

Risks:

• general macroeconomic uncertainty;
• the current US government ban on the supply of certain types of semiconductor equipment to China;
• disputed access to spare parts and consumables.

All this is not news, but the demand for the Applied Materials product itself in the world will only increase, which means that the company’s position in the sector will remain at least strong, at most it will significantly improve.

The consensus forecast for Applied Materials shares in the future until the end of 2023 is $120-125.

On the daily trading chart of Applied Materials stocks, the MACD indicator decreases in the positive zone and forms a sell signal. This is a correction after the previous wave of price rise. The Stochastic oscillator is declining in the oversold zone and still retains a sell signal, but later it will change to the opposite.