Goldman Sachs Suggests Buying Calls on Applied Materials (AMAT)

Goldman Sachs is out with an analyst note this morning, where it suggests buying calls on Applied Materials AMAT. The report noted that Goldman Sachs Semi Analyst, James Covello, expects AMAT to benefit from a strong semi capex backdrop in 2011, with robust smartphone and tablet demand driving 2011 semi capex growth of 20%. The analysts suggest getting into the name ahead of Intel's INTC earnings. The GS analysts suggest playing this thesis by buying the January $14.00 calls for $0.33.