When Intel (Nasdaq: INTC) announced plans in mid-January to spend an eye-popping $9 billion on capital spending, tech analysts sat up and took notice. Many of them have been lukewarm on chip stocks for so long that they simply didn’t see it coming. And when Samsung and Taiwan Semiconductor (NYSE: TSM) followed up with similarly aggressive plans for 2011, it became apparent that the entire chip industry was now in full-growth mode. The prime beneficiary of the newfound momentum in capital equipment spending: Applied Materials (Nasdaq: AMAT). I told readers to buy shares two months ago,… Read More
When Intel (Nasdaq: INTC) announced plans in mid-January to spend an eye-popping $9 billion on capital spending, tech analysts sat up and took notice. Many of them have been lukewarm on chip stocks for so long that they simply didn’t see it coming. And when Samsung and Taiwan Semiconductor (NYSE: TSM) followed up with similarly aggressive plans for 2011, it became apparent that the entire chip industry was now in full-growth mode. The prime beneficiary of the newfound momentum in capital equipment spending: Applied Materials (Nasdaq: AMAT). I told readers to buy shares two months ago, as there was simply too much pessimism around the world’s largest semiconductor capital equipment firm. And it looks as if The Street is still underestimating this tech powerhouse. The recent 28% spike in the stock was impressive, but I see another 25% or so move coming this spring. On its way to $20? As I’ve noted in the past, analysts tend to move very slowly, judging stocks by how the next quarter will fare. Price targets are raised and lowered based on updated 90-day forecasts. But when… Read More