A growing order book stabilizes Applied Materials: investors should also consider AMAT's blue chip clientele, globally diversified revenue base and high p/e

Applied Materials (NASDAQ: AMAT; Recent price: US$50.60) is by far the largest supplier of products and services to the global semiconductor industry. It is one of the world's leading information infrastructure providers. Applied Materials enables semiconductor manufacturers to produce more powerful, portable and affordable chips.

The company's products have a big share in many industry sectors such as deposition (layering film on wafers), etching (removing portions of chip material to allow precise construction of circuits), and ion implantation (altering electrical characteristics of specific areas of silicon wafers).

Applied Materials also manufactures metrology and inspection equipment. Intel, the world's top chip maker, is Applied Material's top customer. Other well-known companies such as Advanced Micro Devices and Motorola are also AMAT's clients. The company generates more than US $6 billion in worldwide revenue, with more than half of sales originating from the Asia-Pacific region.

Although, like all other tech companies, AMAT's p/e ratio is high, there are many factors that indicate that the company's stock price is likely to increase in the coming months. Its order bookings have risen substantially during the first quarter of this year and its market share in new generation 300mm and 0.13mm micron chip production is likely to increase. If you invest in technology shares, AMAT is one you might want to consider at this time.

Applied Materials Inc.

Current P/E                    195
Earnings/Share (est)          0.26
Dividend Yield                  NA
Debt/Equity Ratio             0.07
Net Profit Margin            3.10%
Shares Outstanding    US$819.9 Mil