Applied Materials' financials for its fiscal fourth quarter 2014 (ended in October) were solid. Revenues increased 14%, and adjusted EPS jumped 42%. Around 60% of the company’s sales came from the Asia/Pacific region. New orders incresed 8%. Applied Materials generates strong cash flows, pays dividends, has solid balance sheet by all measures. The company has a solid product line, and management has stepped up investments to prepare for the ongoing transitions to larger wafer sizes and smaller process nodes. The ramp up in FinFET, 3D NAND and new display technology will likely be the catalysts going forward. There is also scope for share gains on the Display side of the business backed by the PVD tools. The drivers of this business are larger TV screens and better mobile displays that involve more complicated production processes and new tools. Also, management expects demand for DRAM chips, used mainly in personal computers, to improve in the upcoming quarters. With target price of $26, Applied Materials' shares, I believe, look nice for medium-term investment. $AMAT, Applied Materials Inc. / 1440