Semiconductor Capital Equipment Stocks : AMAT LRCX ASML KLAC: Best Stocks to Buy for Long Term

Описание: Semiconductor Capital Equipment Stocks : Best Stocks to Buy for Long Term : AMAT, LRCX, ASML, KLAC

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Semiconductor tool makers Applied Material (AMAT stock), Lam Research (LRCX stock), ASML Holding NV (ASML stock) and KLA- Tencor (KLAC stock) are best stocks to buy for long term. These four companies are blue chip in buy and hold investment They belong to very specialized category in semiconductor stocks called Semiconductor Capital Equipment. Applied Material, ASML holding NV, KLA-Tencor and Lam Research are picks and shovels of semiconductor industry and essential to leading edge chip manufacturing. They face minimal competition and have high barriers to entry and sustainable competitive advantages with 4-5 decade long experience curves.

Semiconductor chips are essential to our digital lives. These leading-edge chips are required for PC, gaming, robotics, artificial intelligence, machine learning, cloud computing and data centers.

Understanding semiconductor capital equipment companies may be somewhat daunting the but they hold very dominant position in their niche and face little competition. Chips are made in silicon wafers. 85% of semiconductor capital equipment industry is focused on front-end wafer manufacturing. Applied Material (AMAT stock) , Lam Research (LRCX stock), ASML Holding NV (ASML stock), KLAC-Tencor (KLAC stock ) are important companies in this space.

There are mainly four process for semiconductor manufacturing: Deposition; Lithography; Etch and Metrology [measumement, inspection, defect detection, process control]. Each of four companies perform one of these four essential tasks and work in a collaborative process to reduce time to market for their customers.

Applied Material (AMAT) have more than 50% market share in deposition followed by Lam Research. ASML Holding dominates high end lithography with over 75% market share. Lam Research (LRCX) is mandatory for etch and clean and KLA-Tencor for metrology and process control. As I said these stocks are picks and shovels of semiconductor industry and sell at reasonable prices. They are currently beating earnings and sales projections and rated highly by Wall Street analysts as well as investment services like Morningstar.

AMAT Stock, LRCX stock, ASML stock, KLAC stock

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