AMAT: Citi Cuts Rating to Hold, Sees Samsung Cutbacks
Applied Materials (AMAT) shares are trading off sharply this morning after Citigroup’s Timothy Arcuri cut his rating on the stock to Hold from Buy. He also cut estimates on KLA-Tencor (KLAC), Novellus (NVLS), Lam Research (LRCX) and Advanced Energy Industries (AEIS).
Arcuri reports in a research note that he sees AMAT’s Q3 semi equipment orders tracking down 5 to 10 percent in sequentially off a Q2 that was at the low end of guidance due to push-outs from Hynix that now also include Samsung and Taiwan Semiconductor (TSM).
Arcuri writes that there have been “big changes at Samsung,” where the company has “significantly downsized” second-half orders, with its Line16 now planned as “a stripped down copper fab” with re-used tools rather than a “full-blown production fab.”
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