Is Applied Materials (AMAT) A Great Long-Term Investment?

LRT Capital Management, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -6.71% was recorded by the LRT Economic Moat strategy for the month of November 2021, extending its 12-month returns to +23.06%. Year-to-date, LRT Capital was able to post a gain of +17.91%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

LRT Capital Management, in its Q3 2021 investor letter, mentioned Applied Materials, Inc. (NASDAQ: AMAT) and discussed its stance on the firm. Applied Materials, Inc. is a  -based manufacturing company with a $137.9 billion market capitalization. AMAT delivered a 76.98% return since the beginning of the year, while its 12-month returns are up by 72.97%. The stock closed at $152.73 per share on December 10, 2021.

Here is what LRT Capital Management has to say about Applied Materials, Inc.  in its Q3 2021 investor letter:

“Compare Rivian to Applied Materials (AMAT), a semiconductor equipment supply company that specializes in the “frontend” (primarily patterning) of the semiconductor manufacturing process. The company makes products that are critical to making modern computer chips. It has a market cap of approximately $145 billion dollars. It, also, generated $0 from selling EVs over its lifetime. However, Applied Materials generated $21 billion in revenue and $5.1 billion in net income over the past twelve months alone in its semiconductor equipment business. Since a company that sells no EVs is worth $150 billion, then Applied Materials semiconductor business is being valued at a negative $5 billion dollars…” (Click here to see the full text)

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Based on our calculations, Applied Materials, Inc. (NASDAQ: AMAT) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. AMAT was in 68 hedge fund portfolios at the end of the third quarter of 2021, compared to 73 funds in the previous quarter. Applied Materials, Inc. (NASDAQ: AMAT) delivered an 11.61% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on AMAT in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.