Materion is an AI play, this investor says
Caldwell Investment Management president and CEO Brendan Caldwell says Materion (Materion Stock Quote, Chart, News, Analysts, Financials NYSE:MTRN) offers a “picks and shovels” way to participate in AI and semiconductor growth.
Speaking on BNN Bloomberg’s Market Call on June 24, Caldwell said Materion supplies high-purity chemicals, beryllium-based alloys and performance materials used in semiconductors and related equipment.
“It’s making the materials that the semiconductors and all the gear is made out of,” Caldwell said.
Caldwell said Materion’s ownership of a beryllium mine gives it a cost advantage against competitors in some specialty materials.
He said beryllium is not a metal investors often focus on, but it is important in performance materials tied to semiconductor and technology demand.
“It’s an interesting way to participate in the growth of AI and the technology through the picks and shovels,” Caldwell said.
The stock was up 256.1% over the previous 12 months and 267.2% over five years. Of the analysts covering the stock, three rated it “Buy,” one rated it “Hold” and none rated it “Sell,” with a consensus target of US$257.33.
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Rod Weatherbie
Writer
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.