Applied Materials (AMAT, Financial) has acquired 9% of BESemiconductorIndustries N.V.'s (BESIY) outstanding common stock, a strategic move aimed at strengthening their collaboration in semiconductor assembly technology. The two companies have worked together since 2020 and recently renewed their partnership to develop the first fully integrated equipment solution for die-based hybrid bonding.
Hybrid bonding, a cutting-edge technology in semiconductor packaging, enhances chip efficiency by enabling direct copper-to-copper connections. This method increases circuit density and reduces the length of interconnect wiring, thus improving chip performance and energy consumption, which is crucial for the next generation of energy-efficient semiconductors.
Terry Lee, Corporate Vice President at Applied Materials, emphasized that this investment underscores the company's commitment to innovating hybrid bonding solutions, vital for advanced logic and memory chips that power artificial intelligence technologies.
The transaction was completed through market-based purchases and does not require regulatory approval. Applied Materials has stated it will not pursue board representation at BESI, nor does it currently plan to increase its stake.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 32 analysts, the average target price for Applied Materials Inc (AMAT, Financial) is $206.42 with a high estimate of $250.00 and a low estimate of $164.00. The average target implies an upside of 42.82% from the current price of $144.53. More detailed estimate data can be found on the Applied Materials Inc (AMAT) Forecast page.
Based on the consensus recommendation from 35 brokerage firms, Applied Materials Inc's (AMAT, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Applied Materials Inc (AMAT, Financial) in one year is $168.43, suggesting a upside of 16.54% from the current price of $144.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Applied Materials Inc (AMAT) Summary page.
