Ed BrownApplied MaterialsAMATTOP PICKJul 30, 2004

Supply to TSM. They "make the things that make the things". Demand for its products will increase with onshoring and increased complexity of technology. Yield is 0.7%.

Recent performance good for investors, but generally stays away from sector given cyclical nature of business. Would recommend selling on strength of share price. 

It's down 5% today on news. Their earnings were fine, but were overshadowed by the Department of Justice inquiry about AM allegedly selling restricted products to China. He won't sell because of the DOJ inquiry, because AM's performance has been strong.

They report Thursday. Shares soared on good news from Taiwan Semis about that company's revenues surging.

It has free cash flow generation given revenues without heavy leverage exposure. A quality name.

12-month price target of $156.60. International. Most recent earnings beat on top and bottom. Launching multi-billion dollar R&D platform, which is driving semiconductor innovation side. Yield is 0.93%.

You need their equipment to produce semi chips. Is up 37% YTD. This industry has been slumping lately, but Wall Street sees potential long term, fueled partly by the AI boom.

Is sticking with it. Trades at a 20% discount to [inaudible].