Chip Stock Investor on $AMAT (Oct 27, 2026)
The speaker likes Applied Materials' move to raise its BE Semiconductor stake to 20% from just under 10% and will keep holding AMAT. After a sizable selloff from its late-June peak, AMAT's valuation looks significantly more reasonable, and its premium is judged far more sensible than a premium on actual manufacturing facilities like Amkor.
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And one of our favorites, and in fact, the original investment we made in this part of the industry over a decade ago, Applied Materials just announced yesterday that it is actually increasing its strategic investment into BE Semiconductor Industries, or BESI for short, in the Netherlands, one of the leaders in providing advanced packaging equipment.
So they're increasing their equity investment in BESI to 20% of the company. Previously, it was just under 10% of the company. We like this strategic partnership and will continue holding Applied Materials.
It also has sold off quite a bit from its peak at the end of June, but the valuation on it now looks significantly more reasonable than it was. But we think that premium valuation for Applied Materials makes much more sense than a premium valuation on the actual manufacturing facilities like Amkor.
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