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Applied Materials, Santa Clara, CA, the leader among semiconductor capital-equipment companies, is named as a buying opportunity by some industry observers. Applied, which controls 13% of a $34 billion market, is poised to exploit the industry's downturn. Previously, when the industry has slumped, Applied has taken advantage of its strong cash position by purchasing competitors with low stock prices. Thus, Applied has been able to increase its market share even in difficult times. Applied's own stock has dropped to $29 late in Dec 1997, down from a 52-week high of about $54 on Aug 20. However, the company has $1.5 billion in cash that could be used to pick off rivals, and in any event, analysts predict a strong rebound.

Activision is poised to succeed in 1997 holiday sales of home computer games. The interactive entertainment software developer and seller should have top-sellers that will perform deep into 1998, according to analysts. The forthcoming 'Heavy Gear' game for PCs will likely trail only Broderbund's 'Riven' among popular titles for Christmas 1997, UBS Securities analyst Michael Wallace said. Analysts say Activision's young and organized management team seeks to widen its portfolio of 250 games, 80% of which are created in-house. Its strategy also emphasizes keeping titles fresh and staggering the release of new titles. Activision frequently recruits from the top US business schools, in contrast to the industry's many undisciplined counterparts. Company revenue leaped to $31 million in the 2nd qtr, a 66% gain, and per-share earnings of 13 cents eclipsed Wall Street's 11-cent estimates.