I'm not talking about Nvidia or AMD or Intel, i'm talking about the back-end suppliers of ultra-complex manufacturing equipment for the likes of TSMC and other semi fab co's. Deposition and etch equipment (among other things) used in manufacturing things like NAND flash.
This subsector has been on a tear over the last few years, growing at 30-50% revenue and EPS, insane margins of 30-40%, often have piles of cash and little debt, massive shortages and backorders of NAND flash processing machines and other mfg equipment, and many are still getting PE ratios between 12-19...
Despite this year's 30-40% growth rates and massive NAND flash shortages, analysts are projecting 5% growth next year for nearly all of these companies. Are they just pulling the numbers from the industry average (Intel being the dominant player, yet having nothing to do with this subsector)?
Are they telling us NAND flash is really going to slow from 40% to 5% next year?
Here are just a handful of back-end suppliers with fairly attractive fundamentals and solid growth:
- LRCX
- AMAT
- ICHR
- MKSI
- UCTT
I wouldn't touch Intel with a 10-foot stick, though.
Submitted June 27, 2017 at 08:44AM by talyen42 http://ift.tt/2shDOU4
