CMP: $12

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

AMAT is a $16 B large-cap stock. Its currently trading at a fair P/E of less than 9. Revenues have grown from $8.1 B to $9.5 B over the last 2 years. Profits have stayed flat at around $950 M over the last 2 years. FY11 profits has been very good, growing at 100% with NPM rising from 10% to 17% and also aided by Revenue growth. A good buy for long term.