Jefferies analyst Mark Lipacis' analysis of transistor count in CPUs supported his thesis of secular demand for wafer fab equipment.
CPU die sizes have increased by 5x - 9x for Intel Corp (NASDAQ: INTC) and Apple Inc (NASDAQ: AAPL) over three to five years.
He views the current risk-reward as "particularly compelling" based on the current 25% discount to the market at which many of these stocks traded.
Lipacis has a Buy on his preferred semiconductor capital equipment stocks KLA Corp (NASDAQ: KLAC), Applied Materials Inc (NASDAQ: AMAT), Lam Research Corp (NASDAQ: LRCX), ASML Holding NV (NASDAQ: ASML), and ACM Research Inc (NASDAQ: ACMR).
Price Action: ASML shares traded lower by 0.86% at $648.45 in the premarket on the last check Friday.
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