Chip Machinery Makers Emerge as Big Winners in Supply Crunch
- Applied Materials shares have advanced 36% so far this year
- Cowen sees reasons to be bullish on equipment in coming years
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The sudden shortage of semiconductors is disrupting automotive production and limiting revenue growth for Apple Inc. It’s created a stock market boon, however, for the makers of chip production equipment.
Those companies have emerged as the biggest winners from the supply crunch as chipmakers rush to add more factory capacity. Applied Materials Inc., the world’s biggest equipment maker, has seen its shares advance 36% this year, making it the best performer in a semiconductor index. Brooks Automation Inc., Lam Research Corp. and KLA Corp. are each up more than 19%, nearly twice the gain in the Philadelphia semiconductor index. The stocks fell on Tuesday amid a broad technology slump following a two-day rally.