Key insights
- Tematica Research CIO Chris Versace sees opportunity in Applied Materials (AMAT) due to AI-driven chip demand and industry capacity constraints. Despite selling AMAT previously, a recent pullback and strong forecasts from Nvidia and Broadcom CEOs suggest renewed upside. The analysis points to a multi-year build-out requiring increased chip manufacturing capacity, benefiting AMAT.
Tematica Research chief investment officer Chris Versace joins Market Domination host Josh Lipton to explain how a recent pullback in Applied Materials (AMAT) might actually offer investors an opportunity, citing strong artificial intelligence (AI)–driven chip demand.
All right, small buys there and I'll end here. Christopher, started a new position in Applied materials.
Now, that one has been already a rocket ship. 135% 12 months. Explain this one.
Well, I'll I'll go I'll go you one step further.
Yeah.
We owned it and sold it about a year ago, which honestly, not a good move on our part. Totally missed it.
We were very concerned about tariffs and the implications for that.
But um the stock has pulled back of late and we're just sitting back thinking, you know, kind of putting all the data points together. And you if you listen to what um Nvidia CEO Jensen Wang said last week about the demand for Blackwell and Reuben. You think of what um Hoton had to say over at Broadcom and what he sees delivering over the next two years. And then you just factor in all the other chip companies, the industry's capacity constraint.
Mhm.
And if you think of where we're going in terms of the further build out over the next two, three, four years, there's going to be need for more capacity. Hence, applied materials.
Look at that chart.