ICHR - Investing In MKS Instruments In The Supply Chain Or In Its Major Semiconductor Equipment Customers
2024-07-13 09:22:52 ET
Summary
- MKS Instruments is a major supplier to semiconductor equipment companies Lam Research and Applied Materials, with one-third of revenues from them.
- Investing in smaller supply chain companies offers growth potential but carries risks of stock price fluctuations and dependency on few customers.
- AMAT and LRCX exhibit strong share price growth compared to their three suppliers.
- All three parts suppliers exhibit negative profit margins for the 1-year period, while LRCX and AMAT have positive double-digit margins.
- WFE revenues are expected to recover in 2024, with a slow recovery not happening until the second half of the year.
MKS Instruments ( MKSI ) is a major supplier of components and subsystems to major semiconductor equipment companies Lam Research ( LRCX ) and Applied Materials ( AMAT ), and about one-third of its revenues come from these two companies. MKSI was in the spotlight on Wednesday July 10, as Bank of America started coverage on the semiconductor equipment company with a Buy rating....
Investing In MKS Instruments, In The Supply Chain, Or In Its Major Semiconductor Equipment Customers