Applied Materials, Lam Research, Or Tokyo Electron: Which Generalist Is The Most Likely To Outperform?

Summary

• Applied Materials, Lam Research, and Tokyo Electron are the three generalists in the Wafer Fab Equipment sector.
• With wide moats, fueled by scale, switching costs, and customer relationships, they wield high dominance over their markets and are indispensable to their customer base.
• Due to a very low valuation relative to its peers or the market, as well as on an absolute basis, I rate Tokyo Electron a "Strong buy".