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   Technology StocksASML Holding NV


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From: BeenRetired4/7/2021 8:07:43 AM
   of 18830
 
AMAT CC: "revenue generated by service agreements from ~40% to >60%"...

WFE as a Service.
And,...
No one does it better than ASML's Litho as a Service.
NO ONE.

Over the past five years, we've grown our services business at a compound annual growth rate of 12%, which is twice as fast as our installed base growth. In this period, we've increased the percentage of service and parts revenue generated by service agreements from around 40% to more than 60%. These long-term agreements enable us to deliver more value to customers with our advanced service products while providing us with stickier and more predictable recurring revenue streams. Our renewal rates for these agreements are also very high at over 90%.

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From: BeenRetired4/7/2021 8:19:51 AM
   of 18830
 
AMAT CC:

We've got robust end markets and strong product momentum within those end markets, so we feel good. And then as we look beyond 2021, we see from an overall market standpoint and a company-specific momentum standpoint, we see continued strong performance into 2022. So again, we like how well we're positioned. 2021 is a more favorable mix, and I would expect us to significantly outperform again.

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From: BeenRetired4/7/2021 8:27:46 AM
   of 18830
 
"2D scaling coming to an end...really about new structures, new materials"...

The All Solid State Solution bonanza JUST started.

ASML

Gary Dickerson -- President and Chief Executive Officer

Yeah. C.J., this is Gary. Thanks for the question. I'll give a little bit more color relative to our specific opportunities.

If you look at the industry overall, certainly, technology is transforming every aspect of our lives. That's driving the overall business sustainably higher. And at the same time, we've talked about 2D scaling coming to an end. So really -- and you can even see in recent meetings with some of our largest customers where they're publicly talking about the road map going forward around new chip architectures, new structures, new materials, new ways to connect chips together, design technology co-optimization, again, around certain structures and materials.

And so that's really where we're focused. And when you think about what's going to enable the future, it really is about new structures, new materials. We talked about packaging up 50%, new ways to connect chips together, and we're just in a sweet spot relative to the technologies we have. When you think about creating those new structures and new materials, PVD is a big driver for us.

Our epi business is going to be very strong this year. The thermal processing, CVD, all of those areas are very strong. Etch, we're continuing to win. And when you think about shaping those structures, our Selectra product is a leader in the industry, creating and shaping those structures and then the modification with CMP and implant.

And then in PDC, as I talked about in the prepared remarks, that business is growing for us. So I can certainly give more color later on the call on that. But again, we're just in a really great position. When you think about what's going to enable the future inflections and the power and performance for the infrastructure, going forward, we've never been in a better position.

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From: BeenRetired4/7/2021 8:38:23 AM
1 Recommendation   of 18830
 
AMAT CC: "every industry is being accelerated in the current environment"...

And,...
Once you go EUV you never go back.
Chips have never seen an inflection point like 3nm SuperFin GAA.
And,...
It will be JUST the start.

ASML

Gary Dickerson -- President and Chief Executive Officer

Yeah. Let me -- so I do think that everyone can see that, relative to economic growth and employment growth, going forward, it's going to look different. And the digital transformation of every industry is being accelerated in the current environment that we're in. So this is very strategic from -- again, from an economic and employment growth perspective.

From Applied's perspective, we have been engaged with customers and also government initiatives around investments in different locations. And what I would say from Applied's perspective, there are a couple of things to think about. One is, as these companies are moving into new locations, you have to look at the scale of the factories that they're building and -- at least what's been announced is smaller scale, somewhat less efficient. Now supply demand eventually works itself out, but that somewhat less efficient factory size is a positive for Applied.

And the other thing, what we've seen in every case where a company is moving from one geographic location where they have tremendous amount of talent concentration and experience that that creates an opportunity for our service business as they move into a new location. So I think both of those things, the factory efficiency and the service business, our service agreements are much higher also in those cases. That creates an opportunity for us. This can play out over time.

But certainly, I think from a strategic perspective, we can all see that the pull there is very strong.

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From: BeenRetired4/7/2021 8:45:13 AM
   of 18830
 
AMAT CC: Inspection System "really gives customers tremendous performance at a much better cost of ownership"

"has a big impact on the speed of the yield ramp"

Gary Dickerson -- President and Chief Executive Officer

Yeah. Thank you, Krish. So really, I would say there's three major drivers. One is the new optical wafer inspection system where we've seen tremendous pull.

And especially in foundry -- leading foundry, we've seen a tremendous ramp of that new optical wafer inspection system. And it really gives the customers tremendous performance at a much better cost of ownership so they can insert inspection points in more places in the line, and that has a big impact on the speed of the yield ramp. So that's really in the early phase of adoption, the new optical wafer inspection system. Our e-beam products are tremendously strong.

If you look at a 2021, our e-beam growth would exceed every prior year for PDC total systems business other than 2020. So that business is very strong. We have leadership in electron optics. We've introduced a new source technology that gives us much higher resolution, much faster imaging in one segment of the EB market.

We will take that core technology in electron optics across all of our different platforms, and it creates just a tremendous opportunity for us to continue to extend our leadership in the e-beam part of the market. So that's growing very fast. And the third thing I would say that's really important, when you think about power performance area and cost, what's really important to our customers is how fast they can drive all of those different key metrics. So accelerating, certainly for us and for them, we talk about PPACt, is enormously important.

And there are cases with the -- especially our e-beam products where you can generate orders of magnitude more data in a much faster period of time. So when you're thinking about optimizing the new materials, the new structures with unique imaging and algorithms to accelerate both our internal R&D at Applied and also the PPAC road map for our customers, that synergy is increasing from an overall company perspective. So again, I think the optical inspection, we're in the early phase of the adoption. E-beam, leadership in imaging.

We'll extend that leadership with new capabilities. And the synergies with our overall business has never been better and never been more important for us and for our customers.

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From: BeenRetired4/7/2021 8:54:50 AM
   of 18830
 
shill @ AMAT CC: It's all about Shrink n Stack, huh?...

Timothy Arcuri -- UBS -- Analyst

Thanks a lot. Gary, I guess I had a longer-term question for you. So we're going to see gate-all-around maybe late next year but definitely in 2023. And then we go to FinFETs maybe in '24 or definitely '25, which seems like a long way away, but it's not really that far out there.

And there seems to kind of be a broad view that litho is going to be a big headwind for the films companies like you. But it actually seems like the same thing could happen in logic that happened in NAND, where you start to stack transistors so that you could capture the incremental dollars versus litho if you look out, say, three to five years. So can you just kind of talk about what's happening in logic?

Gary Dickerson -- President and Chief Executive Officer

Thanks for the question, Tim. So what I would say, I meet these CEOs and R&D leaders for leading foundry and logic on a very regular basis, actually more often now than I did before the pandemic because we're doing all of this virtual. I deeply believe -- and you can see even this week, there was one of our leading customers talking about how they're driving their technology road maps going forward. And it's really around the five elements that we've been talking about: the new structures; new chip architectures; everybody is designing their own application-specific chips; new materials; new ways to shrink.

I've talked about packaging and the growth there, but I think we're just in a tremendous position. And when you think about what's going to drive power performance and cost going forward, there's no question, it's about these new structures and these new materials. And when you look at really all of the different markets, you talked about the new transistor structures going forward, whether -- people call gate-all-around or nano sheets or also the wiring, the resistance in the wiring, there's tremendous focus in those areas because that is really what enables power and performance going forward. So we're just in a really tremendous position.

When you think about the materials that are needed to create those nano sheets or the wiring or 3D DRAM or any of those big inflections that are going forward in the future, we just have, by far, the best portfolio of materials that creates those structures. Then you think about shaping the structures. We have strength in conductor etch. We're -- we've certainly had a strong position in memory.

We're growing in foundry/logic. You'll see our share continue to grow there. Shaping with the Selectra product is also really important for nano sheets and for other new structures, the modification of those different structures and also accelerating the time to market. I talked about the synergies with our PDC and especially our e-beam business.

When I'm building this new transistor, if I can see the materials -- residual materials inside that structure as I'm driving the R&D versus having to cross-section one particular transistor and look inside that, their learning rates go up by orders of magnitude. So those unique imaging capabilities, combined with the unique capabilities in creating and shaping and modifying those structures, again, I just -- if you look at what's being presented by our leading customers, even this week, you'll see exactly aligns to this new playbook and enabling capabilities for Applied. So again, I've never been more excited about our opportunities to enable the road map.

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From: BeenRetired4/7/2021 9:04:55 AM
   of 18830
 
AMAT CC: Advanced Packaging "one of 5 key drivers for PPAC road map"...

Packaging (Advanced seems soooo redundant like "smart" this and that) is a positive for Shrink.
Packaging is NOT a way to avoid Shrink.
shill/"expert" clowns...

ASML

Patrick Ho -- Stifel Financial Corp. -- Analyst

Thank you very much, and congrats on a nice finish to the calendar year. Gary, maybe just to follow up on some of the questions and given the strength that you had in the advance packaging business that looks like it's another growth opportunity for you, are you able to leverage the products from your "leadership and existing portfolio?" Or are you also developing new products given the changes that are going on in advance packaging, particularly as they become more front-end manufacturing-like?

Gary Dickerson -- President and Chief Executive Officer

Yeah. Thanks for the question, Patrick. So I'd start off by saying we've talked about this as being one of the five key drivers for the PPAC road map going forward. And if you look at what leading customers are talking about, packaging is incredibly important for power and performance and cost.

So for me, personally, I've engaged much more so with the R&D leaders in this particular industry than I ever was. Relative to your question about existing products versus new products, I would say it's both. If you look at wafer-level packaging, we're No. 1 in wafer-level packaging; advanced wafer-level packaging with PVD, CVD, CMP, plating.

We have a new Sym3 via etcher also, where we won one of the largest -- one of our largest customers in that business. So we have all of those combinations of products in packaging. And we also announced recently a new integrated hybrid bonding system working with another company that is really important. And we have very strong pull from every one of the -- our leading customers with that new technology.

So again, it's a combination of both, where we're innovating with our existing products, also looking at accelerating the big inflections in packaging, and hybrid bonding is one example of that. So I think it's just a tremendous opportunity for the company. I think this is going to become more important as we go forward, and we're in a unique position with the combinations of capabilities that we have.

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From: BeenRetired4/7/2021 9:45:15 AM
   of 18830
 
slime street ignores superlative AMAT results/4cast goes with alternate facts

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From: BeenRetired4/7/2021 12:06:45 PM
   of 18830
 
Tech stocks can soar another 25% as reopening boosts digital transformations, Wedbush says

Ben Winck
Mar. 2, 2021, 09:15 AM

Tech stocks will climb 25% or more over the next year as economic-reopening progress spurs new growth, Wedbush said Tuesday.FAANG, cloud, and cybersecurity names will lead the climb, while Uber and Lyft represent the best reopening plays, they added.Valuation concerns are valid, but secular trends lifting the group will offset such worries, according to Wedbush. Sign up here for our daily newsletter, 10 Things Before the Opening Bell.The trends poised to lift all manner of tech stocks are only just beginning, Wedbush analysts Dan Ives and Strecker Backe said.

Equity investors are in the midst of a transition. While tech mega-caps and other growth stocks led the bulk of last year's rally, expectations for a swift economic reopening recently shifted attention toward companies set to benefit most from a recovery. Value and cyclical names have roared higher and left tech names lagging.

Wedbush doesn't expect the underperformance to last. Blowout earnings from pandemic-darling Zoom show tech stocks are set for another quarter of "beat and raise" reports, the analysts said. Digital transformations will take hold soon after and lift tech stocks by 25% or more over the next 12 months, they added.

"As we have witnessed in the cloud, collaboration, cybersecurity, and 5G, this tech party is just getting started with consumer and enterprise-driven demand catalyzing a multi-year growth boom for the tech sector looking ahead," the team said.

Wedbush sees FAANG, cloud, and cybersecurity stocks leading the charge. Disruptive recovery names like Uber and Lyft are the firm's favorite reopening plays, as lifted restrictions will likely revive ridership.

The political backdrop also lends itself to continued strength in tech stocks, according to Wedbush. The Biden administration will likely have a softer tone against China and ease tensions in the "Cold Tech War," the analysts said. The 2020 SolarWinds hack also places a fresh focus on cybersecurity efforts in government, they added.

To be sure, the tech sector still enjoys elevated valuations following last year's rally. Debate over the stocks' pricing will continue, but Ives and Backe expect the group to swing higher even in the face of the broader rotation to value.

"We believe the underlying fundamental stories and white-hot growth creates a yellow brick road to an upward bullish trend," they said.

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To: BeenRetired who wrote (17003)4/7/2021 12:07:43 PM
From: BeenRetired
   of 18830
 
"white-hot growth" Tech

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