To The Moon

Just last month, $Applied Materials(AMAT)$  had issued an earnings warning that the company might miss its previous forecast for the latest quarterly earnings, attributing the miss to newly introduced export restrictions by the US government.

Lo and behold! Fast forward to this month the semiconductor equipment maker, which counts major global semiconductor chip makers like $Taiwan Semiconductor Manufacturing(TSM)$ and $Intel(INTC)$ among its customers, surprised the market by actually delivering strong earnings with revenue of $6.75 billion and earnings of $2.03 per share that heartily surpassed analysts' expectations of $6.45 billion and $1.73 per share respectively, sending the stock price up 3.2% in the extended trading hours after the results were announced.

It appears that the management has executed well and been able to mitigate the macro headwinds amidst rising costs of borrowing, economic slowdown, regulatory restrictions and supply chain disruption. The management will strive to secure licenses from the US government to get around the export restrictions and minimize the impact.

Most importantly, the management has presented an optimistic business outlook for the prevailing quarter, predicting sustainable earnings and ability to maneuver the company out of the macro storms.

I've a little stake in Applied Materials and look forward to long-term, sustainable profitability of the company.

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