Why Chip Equipment Stocks Could Surge for the Rest of 2016, and 4 to Buy Now

Technology

Published: May 24, 2016 8:35 am

Last Updated: January 13, 2020 7:40 am

As the market finally gets over the fact that personal computer (PC) growth has slowed and they begin to factor in the long-term ramifications, there is also a very bright side to the equation. NAND flash growth should continue to be outstanding, and other areas also are picking up steam. For the top semiconductor capital equipment companies, this could be just the recipe to ignite growth in the second half of 2016.

In a new research report, Stifel analysts make the case that NAND flash memory, which is a type of non-volatile storage technology that does not require power to retain data, could see significant growth, as high as 20%. They also think foundry spending could deliver to the upside. We screened the report looking for some of the firm’s top stocks rated Buy, and found four that look very solid. Two are large caps, and two are smaller cap plays.

Applied Materials

This semiconductor capital equipment leader has lagged the overall tech market over the past year, but its shares have bounced smartly off lows printed in February and back in December. Applied Materials Inc. (NASDAQ: AMAT) is actually now finally trading above all the moving averages, and for patient investors may be a high-quality pick now.

The company is the global leader in precision materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic industries. Applied Material’s technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world.