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

• Caterpillar for the semiconductor industry.
• John Deere for chip manufacturing.

• Semiconductor Manufacturing Equipment: Provides advanced tools for various stages of integrated circuit fabrication, including deposition, etch, ion implantation, and chemical mechanical planarization.
• Display Manufacturing Equipment: Offers systems for producing flat-panel displays, such as LCDs and OLEDs, used in televisions, smartphones, and other electronics.
• Advanced Packaging Tools: Supplies equipment for chip assembly and interconnection, enabling advanced packaging technologies like 3D ICs and fan-out wafer-level packaging.
• Metrology and Inspection Systems: Delivers precise instruments for measuring critical dimensions and detecting defects on wafers throughout the semiconductor manufacturing process.
• Applied Global Services: Offers a broad portfolio of services including equipment maintenance, spare parts, upgrades, and factory automation software to optimize tool performance and factory operations.

Applied Materials (AMAT) primarily sells its semiconductor manufacturing equipment and services to other companies, operating on a Business-to-Business (B2B) model. It does not sell primarily to individuals.

Its major customers are leading global semiconductor foundries and integrated device manufacturers (IDMs). Based on recent company disclosures (e.g., 10-K filings), the following companies represent a significant portion of Applied Materials' net sales:

• Samsung (publicly traded, primarily on the Korea Exchange: KRX: 005930)
• Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM)
• Intel Corporation (NASDAQ: INTC)

• Ultra Clean Holdings, Inc. (UCTT)
• MKS Instruments, Inc. (MKSI)
• VAT Group AG (VACN.SW)
• Atlas Copco AB (ATLAS_A.ST / ATLAS_B.ST)
• Entegris, Inc. (ENTG)

Gary Dickerson, President and Chief Executive Officer

Gary Dickerson was appointed President of Applied Materials in June 2012 and Chief Executive Officer in September 2013. He has over 35 years of experience in the semiconductor industry. Before 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, eventually 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 and Chief Financial Officer

Brice Hill was appointed Senior Vice President and Chief Financial Officer of Applied Materials in March 2022. He brings over 25 years of finance leadership experience within the semiconductor industry. Prior to 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 in various high-level roles, including CFO and Chief Operating Officer of the Technology, Systems, and Core Engineering Group. His career commenced at General Motors Corporation in finance positions.

Prabu Raja, President, Semiconductor Products Group

Dr. Prabu Raja is the president of the Semiconductor Products Group at Applied Materials, where he leads the semiconductor process equipment businesses and the global field organization. He joined Applied Materials in 1995 as a process engineer. Throughout his tenure, he has held various senior management, product development, and operational roles, including group vice president and general manager of the Patterning and Packaging Group. Dr. Raja was recognized as an Applied Fellow in 2010 for his significant technical contributions. He holds a Ph.D. in Plasma Physics from the Indian Institute of Technology, Delhi.

Omkaram Nalamasu, Ph.D., Senior Vice President and Chief Technology Officer; President of Applied Ventures, LLC

Dr. Omkaram Nalamasu is the Senior Vice President and Chief Technology Officer of Applied Materials, Inc., and also serves as President of Applied Ventures, LLC, the company's venture capital fund. He joined Applied Materials in 2006. Dr. Nalamasu is recognized as an expert in materials science and is instrumental in driving the company's technology strategy, managing a global R&D portfolio, and fostering innovation. He oversees strategic investments in early- and growth-stage companies through Applied Ventures. Before joining Applied Materials, he was an NYSTAR Distinguished Professor of materials science and engineering and vice president of research at Rensselaer Polytechnic Institute. He also held key research and development leadership positions at AT&T Bell Laboratories, Bell Laboratories/Lucent Technologies, and Agere Systems, Inc.

Applied Materials (AMAT) operates in several key markets, primarily semiconductor manufacturing equipment, display manufacturing equipment, and related services. Here's an overview of the addressable market sizes for their main products and services:

Semiconductor Systems

• The global semiconductor manufacturing equipment market, which is a significant addressable market for Applied Materials' Semiconductor Systems segment, was valued at approximately USD 109.24 billion in 2024. This market is projected to grow to about USD 155.09 billion by 2029, exhibiting a Compound Annual Growth Rate (CAGR) of 7.3%. Another estimate indicates the global market size surpassed USD 123.13 billion in 2025 and is projected to reach USD 280.97 billion by 2035, growing at a CAGR of over 8.6% from 2026-2035.
• For leading-edge logic, specifically Gate-All-Around (GAA) and backside power distribution technologies, Applied Materials' available market is expected to expand from approximately $12 billion to $14 billion per 100,000 wafer starts per month globally.
• In the area of High Bandwidth Memory (HBM) packaging, Applied Materials' revenues exceeded $700 million in fiscal year 2024 globally. Their advanced packaging portfolio generated close to $1.7 billion in revenue in fiscal year 2024 and is expected to double in size as heterogeneous integration adoption grows, indicating a significant addressable market for these technologies globally.
• The Asia-Pacific region is a major market for semiconductor manufacturing equipment and is expected to be the fastest-growing region, holding the highest market share in semiconductor production equipment.

Applied Global Services

• While a specific global addressable market size for Applied Global Services beyond the company's own revenue is not explicitly detailed, this segment generated $6.23 billion in revenue in fiscal year 2024. The services business, particularly with recurring revenue from long-term agreements and subscriptions, is considered a key growth driver.

Display and Adjacent Markets

• The global advanced materials for displays market, which includes equipment for technologies such as OLED, was estimated at USD 148.2 billion in 2021. It reached USD 151.7 billion in 2022 and is projected to grow to approximately USD 180.1 billion by 2030, at a CAGR of 3.7% from 2022 to 2030.
• Within this market, the OLED segment held a 45.4% market share in 2021 and is anticipated to experience substantial growth.
• Applied Materials' MAX OLED solution is expected to more than double their served addressable market opportunity in OLED display manufacturing globally.

Applied Materials (AMAT) is poised for future revenue growth over the next 2-3 years, driven by several key factors stemming from advancements in the semiconductor industry and the company's strategic positioning.

Here are 3-5 expected drivers of Applied Materials' future revenue growth:

1. Demand from Artificial Intelligence (AI) and Advanced Computing: The accelerating development of advanced compute and sophisticated AI is a significant driver, as these technologies rely heavily on advanced semiconductors. Applied Materials is enabling the critical device architecture inflections necessary for energy-efficient AI, which underpins long-term secular growth for the company. This includes increased customer investment in AI, particularly in high-bandwidth memory (HBM) capacity.
2. Growth and Inflections in the DRAM Market: Applied Materials anticipates strong growth in the DRAM sector, with revenue from leading-edge DRAM customers expected to increase significantly in fiscal 2025, potentially leading to a record year for DRAM. Key inflections like the transition from 6F^2 to 4F^2 or vertical transistor architectures are materials-enabled opportunities for Applied Materials, which are expected to expand its market opportunity. Furthermore, the subsequent transition to 3D DRAM is projected to incrementally grow the company's addressable market by 15%. The accelerating demand for High-Bandwidth Memory (HBM) is also a major contributor, with HBM packaging revenue expected to grow substantially in 2024 compared to 2023.
3. New Device Architecture Inflections (e.g., Gate-All-Around and Backside Power Delivery): The industry's transition to new device architectures, such as Gate-All-Around (GAA) transistors, is expected to increase Applied Materials' available market for the transistor module significantly. The company aims to capture over 50% of the process equipment spending for these critical transistor fabrication steps. Similarly, the implementation of backside power delivery is forecast to further expand Applied Materials' available market. These leading-edge technologies and advanced integrated systems are crucial for continued growth.
4. Expansion of Advanced Packaging Technologies: The advanced packaging business is a strong growth area for Applied Materials, with expectations for it to more than double to over $3 billion in the next few years. This technology is vital for advanced semiconductor packaging, enhancing performance and reducing power consumption, especially for AI applications. This also encompasses die stacking technologies that facilitate high-bandwidth memory.
5. Continued Growth in Applied Global Services (AGS): Applied Global Services, which provides integrated solutions to optimize equipment and fab performance, has demonstrated consistent growth. In Q1 2025, AGS revenue increased by 8% year-over-year, driven by healthy growth in services. The service business has a strong track record, growing for 24 consecutive quarters, with a significant portion of this growth attributed to recurring subscription revenue.

Share Repurchases

• Applied Materials announced a new $10 billion share repurchase authorization in March 2025, complementing approximately $7.6 billion remaining from a previous authorization at the end of Q1 FY25.
• The company repurchased $3.823 billion in 2024, $2.189 billion in 2023, and $6.103 billion in 2022.
• Over the past four years, Applied Materials has returned $19.7 billion to shareholders through dividends and share buybacks.

Share Issuance

• The number of outstanding shares has consistently declined over the past few years, indicating net share repurchases rather than significant issuance.
• Shares outstanding decreased by 1.3% in 2024 to 834 million, by 3.65% in 2023 to 845 million, and by 4.57% in 2022 to 877 million.

Outbound Investments

• Applied Materials acquired Picosun, a developer of thin film coating machinery, in June 2022.
• The company also made acquisitions of Perceptive Engineering in November 2020 and Think Silicon in May 2020.
• An agreement to acquire Kokusai Electric Corporation was terminated in March 2021, resulting in Applied Materials paying a $154 million termination fee.

Capital Expenditures

• Annual capital expenditures were $1.19 billion in 2024, $1.106 billion in 2023, and $787 million in 2022.
• A new $10 billion share repurchase authorization and plans to streamline operations and expand capacity for next-generation wafer equipment were approved in early 2025.
• Over 70% of the increase in non-GAAP operating expenses was allocated to research and development for technology inflections.