Semiconductor equipment manufacturer Applied Materials (AMAT, Financial) was our biggest winner. It contributed 433 basis points to the Fund’s return, as its stock soared from $86.30 to $157.36, for a total return of 83.6%. Applied continues to benefit from multi-year trends for increasing chip demand and complexity. Industry-wide equipment spend and the company’s backlog are also at record highs. The company did miss expectations this quarter due to supply chain shortages, but we are confident that this is an issue with supply, not demand, and should be remedied within a few quarters.
From the Parnassus Endeavor Fund (Trades, Portfolio)'s fourth-quarter 2021 commentary.
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