Here are 1-3 brief analogies to describe Applied Materials (AMAT):

• Applied Materials is like **Caterpillar for the semiconductor industry**.
• Applied Materials is like **Honeywell for advanced chip factories**.

• Semiconductor Manufacturing Equipment: Provides a broad range of equipment used in the fabrication of integrated circuits, including deposition, etch, ion implantation, and process control systems.
• Display Manufacturing Equipment: Offers equipment for producing displays used in smartphones, tablets, TVs, and other applications, such as for OLED and LCD manufacturing.
• Related Services: Delivers services like spare parts, upgrades, maintenance, and consulting to maximize the performance and longevity of its installed equipment base.

Applied Materials (AMAT) primarily sells to other companies (B2B) within the semiconductor and display industries. Their major customers are leading manufacturers of semiconductors and advanced displays.

Here are some of their major customer companies:

• Taiwan Semiconductor Manufacturing Company (TSMC) - TSM
• Samsung Electronics - 005930.KS (primary listing)
• Intel Corporation - INTC
• Micron Technology, Inc. - MU
• SK Hynix Inc. - 000660.KS (primary listing)

• MKS Instruments, Inc. (MKSI)
• Advanced Energy Industries, Inc. (AEIS)
• VAT Group AG (VACN.SW)
• Edwards Vacuum (part of Atlas Copco, ATCO-A.ST)

Gary Dickerson, President and Chief Executive Officer

Gary Dickerson has over 35 years of experience in the semiconductor industry. He became President of Applied Materials in 2012 and was appointed Chief Executive Officer and a member of the board of directors in September 2013. Prior to joining Applied Materials, he served as CEO of Varian Semiconductor Equipment Associates, Inc. for seven years until its acquisition by Applied Materials in 2011. He also spent 18 years at KLA-Tencor Corporation, where he held various operations and product development roles, ultimately serving as president and chief operating officer. His career began in manufacturing and engineering management at General Motors' Delco Electronics Division and AT&T Technologies.

Brice Hill, Senior Vice President, Chief Financial Officer, and Global Information Services

Brice Hill was appointed Senior Vice President and Chief Financial Officer of Applied Materials in March 2022, also overseeing Global Information Services. He is a semiconductor industry veteran with over 30 years of experience in finance, mergers and acquisitions, global operations, and strategy. Before Applied Materials, he was Executive Vice President and CFO of Xilinx, Inc. until its acquisition by Advanced Micro Devices, Inc. He also spent 25 years at Intel Corporation, holding significant roles including CFO and Chief Operating Officer of the Technology, Systems and Core Engineering Group, and Corporate Vice President of Corporate Strategy and Business Unit Finance. Hill began his career with various finance positions at General Motors Corporation.

Omkaram Nalamasu, Senior Vice President and Chief Technology Officer, President of Applied Ventures, LLC

Omkaram Nalamasu is responsible for leading Applied Materials' technology strategy and overseeing its venture capital arm. His background includes previous roles at Bell Labs and Rensselaer Polytechnic Institute, and he holds a Ph.D. in Chemistry from The University of British Columbia.

Prabu G. Raja, President of the Semiconductor Products Group

Prabu G. Raja leads the development and execution of strategies for Applied Materials' semiconductor business. He has been with the company since 1995, previously serving as Senior Vice President, and possesses expertise in semiconductor technology and product innovation.

Teri Little, Senior Vice President, Chief Legal Officer, and Corporate Secretary

Teri Little oversees the legal and governance aspects of Applied Materials, ensuring compliance and managing risk for the company.

Here are the key risks to Applied Materials' (AMAT) business:

1. Global Trade Issues and Export Regulations: Applied Materials faces significant risks from global trade issues, changes in trade policies, and export regulations, particularly those affecting sales to China. U.S. government export controls on semiconductor technology sold to China have limited market access and increased competition, which could adversely impact the company's business and operations, and reduce the competitiveness of its products.
2. Cyclical Nature of the Semiconductor Industry and Customer Demand Volatility: The semiconductor industry is inherently cyclical and subject to significant volatility in customer demand. This volatility is influenced by technology advancements, fabrication processes, and broader economic conditions, making it challenging to accurately forecast demand. Fluctuations can lead to customers delaying, canceling, or refraining from purchasing equipment and services, thereby negatively impacting revenue and operating results.
3. Customer Concentration Risk: Applied Materials has a highly concentrated customer base, with a few large chipmakers accounting for a substantial portion of its business. A loss or reduction of business from any major customer could significantly impact the company's financial performance and market position.

The acceleration of China's domestic semiconductor equipment industry, driven by national self-sufficiency goals and international export controls, poses a clear emerging threat to Applied Materials (AMAT).

While still significantly behind global leaders in advanced technologies, Chinese equipment manufacturers (such as Naura Technology for etch and deposition, and SMEE for lithography) are receiving substantial state backing and are rapidly improving their capabilities, especially for mature node processes. As China continues to build out its domestic chip manufacturing capacity, there is a strong push to prioritize and adopt locally produced equipment. This trend could erode AMAT's market share within China over time, a crucial market for global semiconductor equipment suppliers, potentially forcing AMAT to compete with state-subsidized alternatives or face restrictions in accessing this large market.

Applied Materials (AMAT) participates in several large addressable markets for its main products and services, primarily within the semiconductor and display industries. The market sizes provided are global unless otherwise specified.

• Physical Vapor Deposition (PVD) Equipment: The global PVD equipment market space is approximately $4.5 billion. More broadly, the global physical vapor deposition market (encompassing equipment, materials, and services) was valued at $21.5 billion in 2023 and is projected to reach $33.1 billion by 2029. Another estimate places the total global PVD market at approximately $49.2 billion by 2033, with PVD equipment accounting for $11.8 billion of that in 2023. Applied Materials holds a dominant position in PVD equipment, with over 80% market share.
• Chemical Vapor Deposition (CVD) Equipment: The global CVD equipment market space is approximately $13 billion. Other analyses indicate the global Chemical Vapor Deposition market was valued at $22.36 billion in 2023 and is projected to reach $40.16 billion by 2030, growing at a CAGR of 9.1%. The market is also projected to cross $49.47 billion by 2032 from $26.53 billion in 2025. The semiconductor CVD equipment segment accounts for approximately 60% of the combined semiconductor CVD and PVD equipment market.
• Atomic Layer Deposition (ALD) Equipment: The global ALD equipment market space is approximately $3 billion.
• Etch Equipment: The global semiconductor etch equipment market size was valued at $25.40 billion in 2025 and is expected to reach $36.80 billion by 2030. Other projections estimate the market to grow from $28.578 billion in 2025 to $37.024 billion in 2030, at a CAGR of 5.32%. Applied Materials holds approximately 15% of the etching market share.
• Advanced Packaging: The global advanced packaging market size was valued at $45.73 billion in 2024 and is expected to reach $113.33 billion by 2033, exhibiting a growth rate (CAGR) of 9.50% from 2025 to 2033. Other estimates indicate a market size of $38.5 billion in 2024, projected to grow to $111.4 billion by 2034 at a CAGR of 11.5%. Applied Materials' advanced packaging portfolio generated close to $1.7 billion in revenue in fiscal year 2024 and is expected to double in size.
• Display Equipment: Global display equipment spending is expected to reach a cumulative $76 billion during the 2020-2027 period. Applied Materials' MAX OLED solution is anticipated to more than double the company's served addressable market opportunity in OLED display manufacturing.

Applied Materials (NASDAQ: AMAT) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors in the semiconductor industry:

1. AI-Driven Demand and Advanced Logic Transitions: The increasing global demand for artificial intelligence (AI) infrastructure is a significant catalyst for Applied Materials. This demand necessitates advanced manufacturing equipment and processes to produce next-generation AI chips, including those utilizing new device architectures like Gate-All-Around (GAA) transistors. The transition to these advanced nodes is anticipated to substantially increase Applied Materials' available market and revenue per wafer start.
2. Robust Growth in DRAM and High-Bandwidth Memory (HBM): The memory segment, particularly Dynamic Random-Access Memory (DRAM) and its advanced variant, High-Bandwidth Memory (HBM), is a strong driver for Applied Materials. Analysts anticipate significant growth in DRAM revenues, with some projections indicating a substantial increase for leading-edge DRAM customers. Applied Materials' solutions are crucial for enabling these advanced memory technologies, which are essential for AI and data center applications.
3. Expansion of Applied Global Services (AGS): The Applied Global Services (AGS) segment consistently delivers record revenue and is expected to continue its growth trajectory. AGS provides integrated solutions to optimize equipment and fab performance, including spares, upgrades, services, and factory automation software. This segment offers stable and recurring revenue, with a high service contract renewal rate, enhancing the company's overall financial stability and growth.
4. Growth in Advanced Packaging Technologies: Advanced packaging is emerging as a critical growth area, particularly driven by demand for high-bandwidth memory (HBM) and chiplets. These technologies add complexity to the manufacturing process, requiring more sophisticated equipment for wafer thinning, planarization, through-silicon interconnects, and hybrid bonding. Applied Materials is strategically positioned to capitalize on this trend, with expectations for significant growth in this sector over the next several years.
5. Increasing Complexity and Number of Manufacturing Steps per Chip: As semiconductor technology advances, new chip generations require more intricate designs and a higher number of manufacturing steps per wafer. This trend, encompassing innovations like new GAA transistors, backside power delivery networks (BSPDN), and denser interconnects, inherently increases Applied Materials' "share of wallet" with its customers. The company's leadership in materials engineering positions it to benefit from the increasing process steps required for advanced chip fabrication.

Share Repurchases

• Applied Materials announced a new $10 billion share repurchase authorization in March 2025, complementing an existing authorization that had approximately $7.6 billion remaining at the end of the first quarter of fiscal 2025.
• In March 2023, the company announced another $10 billion share-buyback program.
• Over the past four fiscal years (ending Q1 FY25), Applied Materials returned $19.7 billion to shareholders through dividends and share buybacks.

Share Issuance

• No significant share issuance events (e.g., large secondary offerings) were identified within the last 3-5 years.

Inbound Investments

• Nuveen LLC acquired a new position in Applied Materials shares, valued at approximately $1.0856 billion, during the first quarter of 2025.

Outbound Investments

• In April 2025, Applied Materials strategically acquired a 9% stake in BE Semiconductor Industries (Besi) to enhance collaboration in hybrid bonding technology.
• Applied Ventures, Applied Materials' venture capital arm, made a growth equity investment in VVDN Technologies in February 2024 to expand R&D.
• Applied Materials acquired Picosun, a developer of thin film coating machinery, in June 2022.

Capital Expenditures

• Applied Materials' capital expenditures were $3.271 billion in fiscal year 2020, increasing to $9.247 billion in fiscal year 2024.
• The latest twelve months' capital expenditures (as of July 2025) totaled $14.773 billion.
• The company's capital expenditures are primarily focused on investing in AI-optimized manufacturing tools and enabling advanced node production for chipmakers, supporting next-generation chip technologies and energy-efficient computing.