Applied Materials (AMAT, Financial) cut 224 basis points from the Fund’s return, as its stock dropped 25% from $61.04 to $45.82. The company is one of the two main suppliers of equipment used in manufacturing semiconductors. Applied has had strong growth because of the increasing manufacturing complexity and the demand for more chips. Demand should keep increasing for years, given the strong growth in high-data applications and smart devices. The stock price has sunk due to concerns around possible disruption of the supply chain and lower customer spending. We view this weakness as temporary, and we’re confident of Applied’s future growth.
From Jerome Dodson (Trades, Portfolio)'s Parnassus Endeavor Fund (Trades, Portfolio) first-quarter 2020 shareholder commentary.
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