Technology

Goldman Sachs Raises Semiconductor Wafer Fab Equipment Estimates: 4 Stocks to Buy Now

Entegris operates through these business segments:

  • Specialty Chemicals and Engineered Materials provides purity process chemistries, gases and materials and delivery systems to support semiconductor and other advanced manufacturing processes.
  • Advanced Materials Handling develops solutions to monitor, protect, transport and deliver critical liquid chemistries and substrates for a broad set of applications in the semiconductor industry and other high-technology industries.
  • Microcontamination Control segment offers solutions to purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries.


Entegris shareholders receive a tiny 0.26% dividend. The $116 Goldman Sachs price target was raised to $129, above the $125 consensus target. The shares have traded around $120 apiece recently.

Lam Research

This remains a top chip equipment pick across Wall Street. Lam Research Corp. (NASDAQ: LRCX) designs, manufactures, markets, refurbishes and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide.

The company offers ALTUS systems to deposit conformal films for tungsten metallization applications, SABRE electrochemical deposition products for copper damascene manufacturing, SOLA ultraviolet thermal processing products for film treatments and VECTOR plasma-enhanced chemical vapor deposition atomic layer deposition products.

It also provides SPEED gapfill high-density plasma chemical vapor deposition products and Striker single-wafer atomic layer deposition products that provide multiple dielectric film solutions. In addition, the company offers Flex for dielectric etch applications, Kiyo for conductor etch applications, Syndion for through-silicon via etch applications and Versys metal products for metal etch processes.

Lam Research’s Coronus bevel clean products enhance die yield. Its Da Vinci, DV-Prime, EOS and SP address a range of wafer cleaning applications, and Metryx mass metrology systems offer high precision in-line mass measurement in semiconductor wafer manufacturing.

Investors receive a 0.81% dividend. Goldman Sachs hiked its $616 price target to $672, well above the $592.43 consensus target. Lam Research stock has been trading near $650 a share.

Teradyne

This lesser-known semiconductor capital equipment leader also could have solid upside potential. Teradyne Inc. (NYSE: TER) is a supplier of automation equipment for test and industrial applications.

The company designs automatic test systems used to test semiconductors, wireless products, data storage and electronic systems in the consumer, wireless, auto, industrial, computing, communications and aerospace/defense markets. Industrial automation products include collaborative robots used by global manufacturing and light industrial customers to improve manufacturing efficiency and reduce costs.

Many analysts on Wall Street point to the company as a somewhat ancillary play to the sector and have often cited the growing robotics silo as more of a reason to own the shares than the fundamentals related to WFE. The company also has consistently bought back its shares a huge positive for shareholders.

The Goldman Sachs price target on Teradyne stock was lifted to $157 from $146. The $112.79 consensus target is below the recent share price near $131.


These four top companies are executing well and their stocks look to have very solid upside to the Goldman Sachs price targets. They are better suited for investors with a somewhat higher risk tolerance, as they could be a touch more volatile given the solid runs they have made. With that noted, the industry looks poised to continue massive growth this year and next.