Applied Materials (AMAT, Financial) added 96 basis points to the Fund’s return, as the stock rose from $44.91 to $49.90 for a total return of 11.6%. This leading semiconductor fabrication equipment and software provider posted solid quarterly earnings, reiterating 2019 demand guidance and conveying optimism for a 2020 recovery in both semiconductors and display. Applied’s strong results helped solidify investor sentiment that we may be near the semiconductor cycle trough. Additionally, the company’s well-regarded deal for Japanese semiconductor-manufacturing equipment maker Kokusai Electric remains on track for a 2020 close, a milestone that should extend Applied’s global reach.
From Jerome Dodson (Trades, Portfolio)'s third-quarter 2019 Endeavor Fund shareholder letter.
