Applied Materials, Inc. is a global leader in materials engineering solutions, providing manufacturing equipment, services, and software to the semiconductor, display, and related industries . The company operates through a direct sales force, with operations and manufacturing activities in the United States, Europe, Israel, and Asia . Applied Materials' offerings are highly technical, catering to the needs of semiconductor systems, global services, and display markets .
- Semiconductor Systems - Focuses on manufacturing equipment for foundry-logic, implant, packaging, metal deposition, and chemical vapor deposition (CVD), significantly contributing to the company's revenue .
- Applied Global Services - Provides long-term subscription service agreements, accounting for a substantial portion of parts and service revenues .
- Display and Adjacent Markets - Offers solutions for the display industry, maintaining profitability even during industry down cycles .
You might also like
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brice Hill Executive | Senior Vice President and Chief Financial Officer | None | Brice Hill joined AMAT in March 2022 as CFO, overseeing financial statements and compliance. Previously, he was CFO at Xilinx and held various finance roles at Intel. | View Report → |
Gary E. Dickerson Executive | President and Chief Executive Officer | Board member of the U.S.-China Business Council | Gary E. Dickerson has been the CEO since September 2013, leading AMAT to become a leading semiconductor and display equipment company. He joined AMAT in 2012 as President. | View Report → |
Omkaram Nalamasu Executive | Senior Vice President, Chief Technology Officer | None | Omkaram Nalamasu joined AMAT in 2006 and has been CTO since 2013. He also leads Applied Ventures, focusing on strategic investments. | |
Prabu Raja Executive | President, Semiconductor Products Group | None | Prabu Raja has been with AMAT since 1995 and became President of the Semiconductor Products Group in March 2023. He has held various senior roles in product development and operations. | |
Teri Little Executive | Senior Vice President, Chief Legal Officer, and Corporate Secretary | None | Teri Little joined AMAT in June 2020, overseeing legal, compliance, and corporate governance. She previously held senior roles at KLA Corporation. | |
Timothy M. Deane Executive | Group Vice President, Applied Global Services | None | Timothy M. Deane has been with AMAT since 1995 and became Group Vice President in September 2022, having held various senior management roles. | |
Aart J. de Geus Board | Director | Executive Chair of Synopsys, Inc., Board Member of Global Semiconductor Alliance | Aart J. de Geus has been a director since 2007, bringing leadership experience from Synopsys, Inc., where he is Executive Chair. | |
Alexander A. Karsner Board | Director | Senior Strategist at X, Executive Chairman of Manifest Energy Inc., Board Member of Conservation International | Alexander A. Karsner has been a director since 2008, with expertise in technology innovation and sustainability. He holds several external roles, including at Alphabet's X. | |
Judy Bruner Board | Director | Director at Qorvo, Inc., Rapid7, Inc., Seagate Technology plc | Judy Bruner has been a director since 2016, with a background in financial management and strategy from her time as CFO at SanDisk. | |
Kevin P. March Board | Director | Board Member of United Way Foundation of Metropolitan Dallas | Kevin P. March joined the board in 2022, with over 30 years of finance experience from his time as CFO at Texas Instruments. | |
Rani Borkar Board | Director | Corporate VP at Microsoft, Board Member of Global Semiconductor Alliance | Rani Borkar joined AMAT's board in 2020, bringing over 30 years of experience in technology strategy and operations. She is also a Corporate VP at Microsoft. | |
Scott A. McGregor Board | Director | Board Member at Equifax, Inc. | Scott A. McGregor has been a director since 2018, with a background in semiconductor leadership from his time as CEO of Broadcom. | |
Thomas J. Iannotti Board | Chairman of the Board | Director at Rigetti Computing, Inc. | Thomas J. Iannotti has been Chairman since 2005, with extensive experience in service management and technology offerings. | |
Xun (Eric) Chen Board | Director | Executive Chairman at ParityBit Technologies, Inc. | Xun (Eric) Chen has been a director since 2015, with expertise in technology strategy and innovation. He is also Executive Chairman at ParityBit Technologies. | |
Yvonne McGill Board | Director | CFO of Dell Technologies Inc. | Yvonne McGill has been a director since 2019, with extensive financial expertise from her role as CFO at Dell Technologies. |
- With your advanced node revenue expected to double, how much of this growth is truly incremental versus replacing revenue from prior nodes, and how do you assess the sustainability of this growth moving forward?
- Considering that approximately 30% of your revenue comes from China, primarily in the ICAPS business, do you expect this level to hold given potential geopolitical risks and how might changes in trade policies impact your outlook?
- Despite the strong growth in your services business, operating margins remain below prior targets; what structural challenges are preventing margins from returning to the low 30% range, and what actions are you taking to improve profitability?
- You noted an increase in gross margins due to favorable product mix and value-based pricing; can you provide more detail on the drivers behind this improvement and discuss the sustainability of higher gross margins in the current market environment?
- As you see customers adding DRAM capacity, particularly for high-bandwidth memory, how are you managing the potential risk of overcapacity in conventional DRAM, and what strategies are in place to balance investment and demand?
Research analysts who have asked questions during APPLIED MATERIALS INC /DE earnings calls.
Brian Chin
Stifel Financial Corp.
5 questions for AMAT
Harlan Sur
JPMorgan Chase & Co.
5 questions for AMAT
Stacy Rasgon
Bernstein Research
5 questions for AMAT
Vivek Arya
Bank of America Corporation
5 questions for AMAT
Sreekrishnan Sankarnarayanan
Wolfe Research, LLC
4 questions for AMAT
Srinivas Pajjuri
Raymond James & Associates, Inc.
4 questions for AMAT
Timm Schulze-Melander
Rothschild & Co Redburn
4 questions for AMAT
Timothy Arcuri
UBS
4 questions for AMAT
Christopher Caso
Wolfe Research
3 questions for AMAT
Christopher Muse
Cantor Fitzgerald
3 questions for AMAT
Mehdi Hosseini
Susquehanna Financial Group
3 questions for AMAT
Melissa Weathers
Deutsche Bank
3 questions for AMAT
Vijay Rakesh
Mizuho
3 questions for AMAT
Atif Malik
Citigroup Inc.
2 questions for AMAT
Charles Shi
Needham & Company
2 questions for AMAT
CJ Muse
Cantor Fitzgerald
2 questions for AMAT
Joseph Quatrochi
Wells Fargo Securities, LLC
2 questions for AMAT
Toshiya Hari
Goldman Sachs Group, Inc.
2 questions for AMAT
Yu Shi
Susquehanna International Group, LLP
2 questions for AMAT
Chris Caso
Wolfe Research LLC
1 question for AMAT
James Schneider
Goldman Sachs
1 question for AMAT
Joe Quatrochi
Wells Fargo
1 question for AMAT
Joseph Moore
Morgan Stanley
1 question for AMAT
Krish Sankar
TD Cowen
1 question for AMAT
Shane Brett
Morgan Stanley
1 question for AMAT
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Samsung Electronics Co., Ltd. | Purchases equipment & services across multiple segments | All | Contributed 12% of net revenue in fiscal 2024, 15% in fiscal 2023, and 12% in fiscal 2022 |
TSMC | Purchases equipment & services across multiple segments | All | Contributed 11% of net revenue in fiscal 2024, 19% in fiscal 2023, and 20% in fiscal 2022 |
Intel Corporation | Purchases equipment & services across multiple segments | All | Contributed 10% of net revenue in fiscal 2022, and less than 10% in both fiscal 2023 and fiscal 2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Acquired Company | 2025 | Goodwill increased during Q1 fiscal 2025 as a result of preliminary purchase accounting for the acquisition, although the impact was not material to operations or the balance sheet. |
Acquired Company | 2023 | During fiscal 2023, goodwill increased due to preliminary accounting for acquisitions that were not material to Applied Materials’ operational or balance sheet results. |
Acquired Company | 2022 | In fiscal 2022, acquisitions led to an increase in goodwill by $221 million and indefinite-lived intangible assets by $17 million, with no material impact on the company’s results of operations. |
Recent press releases and 8-K filings for AMAT.
- $600 million hit to fiscal 2026 revenue and $110 million reduction in Q4 sales due to expanded U.S. export curbs targeting China.
- The new BIS Affiliates Rule extends export restrictions to majority-owned subsidiaries of sanctioned entities, tightening controls on Chinese customers.
- Shares closed up 2.7% at $223.59 before falling as much as 5.6% in after-hours trading, reflecting investor concern over geopolitical tensions.
- The company exceeded expectations in fiscal Q3 2025 with revenue up 8% year-over-year and fiscal 2024 revenue growth of 2.5%.
- On September 25, 2025, Applied Materials, Inc. secured a 364-day $2.0 billion unsecured revolving credit facility with Bank of America, N.A. as administrative agent, maturing September 24, 2026.
- The facility includes an accordion feature to increase commitments to $3.0 billion, subject to lender commitments and customary conditions.
- Borrowings bear interest at the borrower’s option of Term SOFR plus a margin of 0.50%–1.00% or an alternative base rate, with unused commitment fees of 0.04%–0.10% per annum.
- A financial covenant requires maintaining a ratio of consolidated adjusted EBITDA to consolidated net interest expense of at least 3.00 to 1.00; outstanding loans at maturity may be converted into term loans due September 24, 2027.
- On September 18, 2025, Applied Materials completed a registered public offering of $550 million 4.000% senior unsecured notes due January 15, 2031 and $450 million 4.600% senior unsecured notes due January 15, 2036 under its Form S-3ASR registration statement.
- Applied will use a portion of the net proceeds to repay at maturity $700 million of 3.900% senior unsecured notes due October 1, 2025, with the balance earmarked for general corporate purposes.
- The notes, issued under the June 11, 2024 base indenture as supplemented on September 18, 2025, bear interest semi-annually on January 15 and July 15 beginning January 15, 2026, and include customary covenants, optional redemption features and a change-of-control repurchase right.
- Last quarter saw record revenues and EPS, but Q4 guidance reflects headwinds from slower China mature logic (ICAPs) and non-linear pickup in leading-edge equipment deployment.
- Management reiterates DRAM and leading logic as the fastest growing equipment markets over the next five years, focusing R&D on new process architectures like gate-all-around and backside power.
- 2025 Wafer Fab Equipment (WFE) spending expected to grow ~4%, fueled by AI-driven DRAM and leading logic investments, while mature logic (ICAPs) continues to face headwinds in China.
- Applied’s Applied Global Services (AGS) core business, with over 66% subscription revenue, is growing low double digits, even as 200 mm service revenue declines amid the transition to 300 mm fabs.
- Applied Materials will supply American-made chipmaking equipment from its Austin, Texas facility to Texas Instruments’ U.S. factories, supporting Apple’s semiconductor manufacturing partnership.
- Plans include an investment of over $200 million in a new Arizona components facility, building on more than $400 million invested in its U.S. manufacturing footprint over the past five years.
- The Chandler, AZ facility could create approximately 200 manufacturing, R&D and services jobs over five years.
- Applied Materials operates the largest U.S.-based manufacturing footprint among semiconductor equipment providers, with major sites in Texas, Massachusetts, Montana and a new Arizona facility under development.
- Semiconductor equipment business is expected to grow around 7% year-over-year, driven by AI-related investments, advanced packaging, and increased wafer starts in both mature and leading-edge segments.
- The company is well‐positioned in China’s mature logic market, representing about 25% of business, and remains largely insulated from new trade restrictions.
- Emphasis was placed on recurring services growth, robust capital return programs including dividend increases and buyback strategies, and ongoing investments in R&D and new lab facilities.
- Strong industry momentum with reported 7% YoY growth in semiconductor revenue and a 10% jump in the semiconductor segment in FY ’25, reflecting robust market conditions and design wins driving future chip architectures.
- High-velocity customer co-innovation emphasized through initiatives like the EPIC Center and collaborations targeting innovations four technology nodes ahead, underlining the company’s commitment to integrated processing and advanced packaging solutions.
- Significant technology innovations were discussed, including gains in DRAM market share (10 points over a decade) and advancements in compute memory systems and the upcoming 4F-squared architecture poised to enhance power and performance.
- Advanced services transformation with a strong shift to subscription-based contracts, driving a double-digit compound annual growth rate and improved tool connectivity to accelerate yield and ramp-up processes.
- Q2 2025 Performance: Revenue reached $7.1 billion (up 7% YoY) with record non-GAAP EPS of $2.39, GAAP EPS of $2.63, and 49.2% gross margins – the highest quarterly level since 2000 .
- Robust Growth: Key segments including Semiconductor Systems and Advanced DRAM delivered stable performance, underpinned by leading-edge foundry logic and global operational agility .
- Strong Financials: Achieved margin expansion and solid capital allocation with $1.57 billion in cash from operations supporting nearly $2B in dividends and share repurchases, including $1.67B in repurchases and $325M in dividends .
- Forward Guidance: Provided Q3 outlook with expected revenue around $7.2 billion and non-GAAP EPS near $2.35, reflecting a stable margin environment .
- Strategic Investments: Continued investments in R&D and technology innovations such as DDR5, high-bandwidth memory, and advanced etch systems to drive future semiconductor performance .
- Strategic investment: Applied Materials purchased 9% of BE Semiconductor Industries’ outstanding shares, building upon a four-year collaboration on hybrid bonding technology.
- Technology focus: The investment supports the development of integrated equipment solutions for advanced semiconductor packaging that improves chip density, performance, and power efficiency.
- Transaction details: The acquisition was executed through market-based transactions without regulatory approval requirements or plans for board representation.
- Applied Materials emphasized its long-term secular growth strategy, noting a history of growth in semiconductor equipment investments despite cyclical challenges.
- The company detailed innovations in gate-all-around transistors and backside power distribution that are expected to add approximately $2 billion in new addressable market opportunities.
- Discussion also covered strong trends in advanced packaging and memory production, with high-bandwidth memory (HBM) production growing at about 30% CAGR.
- Strategic capital allocation was highlighted, with plans to return excess free cash flow to shareholders and investments in new projects such as the EPIC lab infrastructure for enhanced R&D collaboration.