When the chips are down, go solar

Stock in Applied Materials (NYSE: AMAT) rose 2 percent in March 2008 after regulatory filings revealed a $1.9 billion “overseas order” for equipment from the company to produce thin-film solar modules in multiple factories.

Analysts speculated that the order, which represents an estimated 20 percent of existing capacity, came from either a Chinese consortium or Moser Baer India, which announced a large solar order in February 2008. In contracts filed with the U.S. Securities and Exchange Commission, Santa Clara-based Applied Materials said it would “supply equipment and installation/warranty services for multiple solar factories to be constructed by buyer.”

Caris & Co. analyst Ben Pang upgraded the company’s rating based on the growth of its solar business. In the first quarter of 2008, Applied Materials’ reported a 35 percent drop in overall profit, citing the weak semiconductor industry, but said its solar business had tripled over the previous year to $122 million. Pang cited solar opportunities in Europe and Asia in his research note and wrote about an expected “string of good news” regarding Applied Materials’ solar efforts in coming months.