AMAT: Citi Cuts Rating to Hold, Sees Samsung Cutbacks

July 11, 2008 at 11:12 am PT

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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Tagged with: Advanced Energy Industries, amsung, Applied Materials, Barrons, Citigroup, Eric Savitz, frontpage, Hynix, KLA-Tencor, Lam Research, Novellus, Taiwan Semiconductor, Tech Trader Daily, Timothy Arcuri

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