GT Advanced Technologies Inc (NASDAQ:GTAT) Rides On Sapphire


Dallas, Texas 10/10/2013 (Financialstrend) – GT Advanced Technologies Inc (NASDAQ:GTAT) is a specialized semiconductor component manufacturer. In September the company had shot into the limelight when it was speculated that iPhone 5S has included a new feature in the form of a “sapphire glass covered home button”. Digital analyst firm Canaccord has gone on record to state that with this new development it is only a matter of time before the stock and the price of Sapphire glass makers to go up. This development is expected to have a trickledown effect on the equipment manufacturer GTAT and Runicon which manufactures the wafers which go into the making of sapphire.

In similar news which seems to give credence to Canaccord assertions is the Digitimes report which has gone on to predict that the new versions of iPads and iPad Minis are also going to feature these sapphire home buttons. This means the entire family of Apple products which will be produced over the next 12 to 18 months are likely to feature components in which GT Advanced Technologies has had a significant involvement.

Readers should note that GT Advanced has been working on designing new sapphire furnaces which are equipped to manufacture larger crystals. The company expects that this will in turn drive down the cost difference between sapphire and currently being used Gorilla Glass. Technical experts who have compared the two glasses have come to a conclusion that Sapphire glass is thinner in size while correspondingly stronger in comparison to Gorilla glass.

GTAT stock was trading at $7.99 per share as of close of business on October 9, which is down 3% compared to previous day close. The stock has appreciated by close to 84% in the past 90 days and analysts have predicted that the stock has scope to improve further on its market valuation.