Bear of the Day: Entegris (ENTG)

Semiconductor-related stocks have taken the brunt of the pullback in correlation with AI bubble fears, and Entegris ENTG has been one to avoid in particular.Providing materials management solutions for microelectronic and semiconductor producers, the valuation for ENTG has become more reasonable, but the trend of declining earnings estimate revisions suggests more downside risk as Entegris deals with industry-related headwinds that are specific to its operations.  Correlating with such, Entegris stock has dropped 20% this month and currently lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day.Image Source: Zacks Investment Research Entegris’ Cautious OutlookThe extended selloff in ENTG comes as Entegris issued somewhat weak revenue guidance for Q4 that came short of analyst expectations and suggests up to a 5% sequential decrease from the $807.1 million the company brought in last quarter.Although Q4 revenue targets still call for double-digit growth from a year ago, Entegris has grappled with margin compression due to tariffs and weaker U.S. sales to China. CoreWeave’s Data Center DelayAdding to geopolitical trade tensions that are impacting Entegris’ outlook is that industry-wide pressures have mounted after AI cloud provider CoreWeave CRWV recently announced a data center delay that triggered concerns across the semiconductor supply chain.As a materials provider, Entegris has been caught in the downturn along with other companies in the semiconductor ecosystem, such as Arm Holdings ARM, Micron Technology MU, and Lam Research LRCX. Declining EPS RevisionsUnfortunately, the short-term volatility in Entegris stock is likely to persist as fiscal 2025 and FY26 EPS estimates have dropped 3% and 8% in the last 30 days, respectively. On top of this, its top and bottom line growth prospects aren’t as spectacular in terms of the expansion potential for the broader AI trade. Image Source: Zacks Investment Research Bottom LineWith its stock falling 35% from a 52-week high of $112 a share, the short-term headwinds that Entegris may continue to face are unfortunately a reason why some AI bubble fears are realistic, especially for companies that aren’t direct developers of the technology.   #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Entegris, Inc. (ENTG): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks