Applied Materials

Applied Materials is the largest semiconductor equipment maker, supplying deposition, etching, and metrology tools to every major fab. Revenue exceeded $26B in FY2023; strong exposure to advanced packaging and gate-all-around transistor transitions.

Applied Materials' tools are essential for advanced packaging and 3D chip architectures that enable modern AI accelerators.

appliedmaterials.com Lithography & EquipmentUSApublic · AMAT

At a glance

Total raised

$3M

last round ipo

Headcount

—

no public estimate on record

Headquarters

Santa Clara

USA

Founded

1967

59 years active

Status

Public

Ticker · AMAT

Patents on file

500

USPTO grants

For subscribers

Subscribe to see the full profile

Including Funding rounds, Bull / Bear thesis, Stock + earnings, Roster changes, Patents, News, and Open roles.

Founding

50% off

/month

91 of 100 spots left

Full

$10

/month

Available once all 100 Founding Member spots are claimed.

Get full access

Already subscribed? Sign in →

Funding history

Total raised

$3M

Rounds tracked

Latest stage

IPO

Date	Stage	Amount	Valuation	Lead investors
Oct 5, 1972	IPO	$3M	—	—

Stock performance

Latest earnings

Q2 FY2026Filed May 14, 2026

Revenue$7.9B

YoY+11%

GAAP EPS$3.51

Applied Materials reported record Q2 FY2026 revenue of $7.91 billion, up 11% year over year from $7.10 billion. GAAP gross margin was 49.9%, GAAP operating margin was 31.9%, and GAAP diluted EPS was a record $3.51, up 33% YoY from $2.63. Non-GAAP diluted EPS was $2.86, up 20% YoY. Semiconductor Systems revenue rose to $5.97 billion (up from $5.40 billion), with foundry/logic at 67% of segment revenue, DRAM at 29%, and flash at 4%. Applied Global Services revenue was $1.67 billion, up from $1.42 billion. The company announced multiple EPIC Center partner engagements including TSMC, SK hynix, Micron, Advantest, and three universities, and agreed to acquire ASMPT's NEXX business for advanced packaging. The quarterly dividend was raised 15% to $0.53 per share. For Q3 FY2026, Applied expects revenue of $8.95 billion ± $500 million and non-GAAP diluted EPS of $3.36 ± $0.20.

Guidance

Q3 FY2026 revenue $8.45B–$9.45B; non-GAAP EPS $3.16–$3.56

Read the 8-K

How they make money

Hardware + recurring servicesPattern

Gross margin49.9%

Operating margin31.9%

Net margin35.5%

Q2 FY2026 · 8-K →

Applied Materials runs a hardware-plus-recurring-services model. It sells physical semiconductor fabrication equipment — deposition, etching, metrology, and ion-implantation tools — to chipmakers such as TSMC, Samsung, and Intel, and then generates ongoing revenue from installation services, warranty extensions, spare-parts consumables, and predictive-maintenance contracts. The equipment is recognized as a large up-front sale upon customer acceptance, while service agreements are recognized ratably over their contract term. The economics are structurally strong: the installed base creates a captive aftermarket for parts and service that carries higher margins than the initial tool sale. Fab equipment is capital-intensive to develop, so R&D is sunk cost that spreads across many units. Applied Materials does not subsidize the hardware to capture services later — both streams are independently profitable. What scales is the service layer: as the installed base grows, the recurring-revenue pool deepens without proportionate increases in field headcount. This is the standard capital-equipment model across the semiconductor industry.

Generated by deepseek-v4-flash · June 2, 2026Analytical summary · not investment advice

AI bull / bear

Bull case

Applied Materials sits at the center of two structural inflections that together create a multi-year replacement cycle. Gate-all-around transistors, which are replacing FinFET at leading-edge nodes, require entirely new deposition and etch sequences. AMAT's eBeam metrology and selective deposition tools are already qualified inside TSMC and Samsung for GAA production. Separately, advanced packaging -- hybrid bonding, through-silicon vias, high-density interconnects -- demands equipment that AMAT dominates. The shift to chiplets and 3D stacking pulls more of their tooling into the back end, expanding the addressable market per wafer. With over $26B in revenue and R&D spending above 12% of sales, AMAT has the scale to out-invest any rival in process integration complexity. Each node transition historically raises equipment intensity by 15–25% per wafer, and AI accelerator demand compresses node timelines. The foundry race between TSMC, Samsung, and Intel creates triple ordering of AMAT tools that compounds across 2024–2027.

Bear case

Applied Materials faces an existential risk from the plateauing of Moore's Law at the leading edge. As node transitions slow from two years to three or four, the replacement cycle for deposition and etch tools extends, squeezing top-line growth. GAA adoption has been repeatedly delayed at both Intel and Samsung, meaning the revenue surge baked into consensus estimates may not materialize until 2026 or later. On the competitive front, ASML's continued tightening of the EUV ecosystem allows them to bundle metrology and co-inspection requirements with their scanners, potentially disintermediating AMAT from critical high-value process steps. Chinese fabs, which accounted for roughly 30% of AMAT's revenue in certain quarters, face escalating US export controls that could sever that revenue stream abruptly. With the stock trading near 22x forward earnings -- a premium to historical averages even after lagging semis peers -- multiple compression is the most probable outcome if leading-edge wafer starts flatten in 2025.

Generated by deepseek-v4-flash · June 2, 2026Refreshes quarterly · see disclosures

In the news

Applied Materials · last 30 days

No articles ingested yet for Applied Materials. Once the hourly news pipeline is live, every article the classifier tags as mentioning this company appears here with its one-line AI summary and sentiment.

Watch

Leadership

Gary Dickerson

President & CEO

Brice Hill

SVP & CFO

—

Products

Deposition Systems (CVD, PVD, Epitaxy)
Tools that lay down the ultra-thin conductive, dielectric, and barrier films forming each layer of a chip, using chemical vapor deposition, physical vapor deposition (sputtering), and epitaxial growth. Applied Materials is the market leader in deposition, and its Endura and Producer platforms are workhorses in virtually every advanced fab. These systems are critical for gate-all-around transistors and advanced interconnects.
Etch & Selective Removal Systems
Equipment that precisely removes material to define transistor and interconnect structures, including conductor and dielectric etch plus selective-removal tools like the Sym3 and SelectraTM platforms. Atomic-scale precision is essential as features shrink and 3D architectures (3D NAND, gate-all-around) proliferate, making etch one of the fastest-growing and most technically demanding steps in chipmaking.
Process Diagnostics & Control (eBeam Metrology/Inspection)
Imaging, metrology, and inspection systems—including high-resolution eBeam tools—that measure dimensions and detect defects across the wafer to maximize yield. As process margins tighten at advanced nodes, this PDC portfolio gives fabs the visibility needed to control variation. It is a high-growth, high-margin segment central to Applied's role in enabling smaller, denser chips.
Advanced Packaging & Heterogeneous Integration
Equipment for chiplet-based and 3D integration—through-silicon vias, hybrid bonding, and wafer-level packaging—that stitches multiple dies into a single high-performance package. As transistor scaling slows, advanced packaging is increasingly where AI-accelerator performance gains come from, positioning Applied Materials at the center of heterogeneous-integration roadmaps for HBM and multi-die designs.

Most recent patents

500 patents on file, but none with both an extractable figure and an abstract on Google Patents yet.