LAS VEGAS, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced it is collaborating with Google on advanced technologies for augmented reality (AR). The collaboration combines Applied Materials' leadership in materials engineering with Google's platforms, products and services to create lightweight visual display systems for the next wave of AR experiences. Together, the companies aim to accelerate the development of multiple generations of products, applications and services. "Applied ...

Applied Materials (AMAT) ended the recent trading session at $149.31, demonstrating a -1.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.Shares of the maker of chipmaking equipment have appreciated by 4.66% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.Investor ...

NEW YORK, Jan. 04, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Applied Materials, Inc. ("Applied Materials" or the "Company") (NASDAQ:AMAT). The investigation concerns whether Applied Materials and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. On November 16, 2023, Reuters reported that "Semiconductor equipment maker Applied Materials is under U.S. criminal investigation for ...

PhonlamaiPhoto/iStock via Getty Images Overview Applied Materials, Inc. (NASDAQ:AMAT) specializes in providing manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company supplies clients with the necessary equipment for semiconductor manufacturing, constantly researches to facilitate the manufacturing of increasingly complex semiconductors. The company operates in an industry that consistently challenges technological boundaries, Applied Materials ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 29, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-06920 Applied Materials, Inc. (Exact name of registrant as specified in its charter) Delaware 94-1655526 (State or other jurisdiction ...

Applied Materials, Inc. (NASDAQ:AMAT) Wells Fargo 7th annual TMT Summit Conference November 28, 2023 1:15 PM ET Company Participants Brice Hill - CFO Conference Call Participants Joe Quatrochi - Wells Fargo Joe Quatrochi First, I will go ahead and get started here. I am Joe Quatrochi, the Semi Cap Equipment Analyst for Wells Fargo. Excited to have Brice Hill, CFO of Applied Materials, here to join us this morning. Brice Hill Good morning. We love everybody, loves this facility and the granola bars. Question ...

Fourth Quarter Fiscal 2023 Earnings Presentation November 16, 2023 Applied Materials External Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new prod ...

Applied Materials, Inc. (NASDAQ:AMAT) Q4 2023 Earnings Conference Call November 16, 2023 4:30 PM ET Company Participants Michael Sullivan - Corporate Vice President Gary Dickerson - President & CEO Brice Hill - SVP & CFO Conference Call Participants Stacy Rasgon - Bernstein Vivek Arya - Bank of America Chris Caso - Wolfe Research Toshiya Hari - Goldman Sachs Steven Chin - TD Cowen Harlan Sur - JPMorgan Srini Pajjuri - Raymond James Timothy Arcuri - UBS Securities Joe Quatrochi - Wells Fargo Joseph Moore - M ...

Financial Data and Key Metrics Changes - The company reported solid results for the recent quarter, with guidance exceeding market expectations [3] - The service business has shown record growth, achieving 16 consecutive quarters of year-over-year growth [37][38] Business Line Data and Key Metrics Changes - The ICAPS segment, which includes IoT, communication, auto, power, and sensors, is performing exceptionally well, contributing to the company's strong market position [4] - The company has gained 10 points of market share in the DRAM sector over the last decade, which is fueling near-term outperformance [4] - Advanced packaging is identified as a significant growth area, with the company holding over 50% market share and a current business valued at $1 billion, with potential to double in the coming years [22] Market Data and Key Metrics Changes - The semiconductor market is projected to reach $1 trillion by 2030, with the company expecting high single-digit growth in the ICAPS segment in line with overall semiconductor growth [9][30] - The company has a strong position in the leading-edge foundry logic market, which is increasingly focused on materials innovation [11] Company Strategy and Development Direction - The company is transitioning its service business from transactional to subscription agreements, enhancing stability during market downturns [8] - The formation of the Integrated Materials Solutions Group has strengthened customer relationships and positioned the company well for future innovations [10][28] - The EPIC Center, a multibillion-dollar R&D platform, aims to accelerate innovation and collaboration with customers, potentially reducing time to market by 30% [23][24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the ICAPS market, particularly in China, despite geopolitical challenges and export controls impacting $1.5 billion to $2 billion in revenue [32] - The company is focused on improving supply chain efficiency and customer trust, learning from disruptions experienced during the pandemic [49] Other Important Information - The company has implemented price increases and is focused on cost reduction to improve gross margins, which currently sit in the mid to high 40% range [42][44] - The company has introduced 20 major new products in the ICAPS market over the last four years, with more expected in the coming years [32] Q&A Session Summary Question: What is the current state of the business and market outlook? - The company is in a strong position in fast-growing market areas, particularly in ICAPS and advanced packaging, with expectations for continued growth [4][22] Question: How sustainable is the growth in the ICAPS segment? - The company anticipates stable growth in ICAPS for 2024, with a compound annual growth rate in the mid- to high single digits expected in the long term [30] Question: How has the geopolitical backdrop affected strategy? - Export controls have impacted revenue projections, but the company remains optimistic about opportunities in the ICAPS market, particularly in China [32] Question: What is the competitive landscape like, especially regarding local Chinese companies? - The company acknowledges competition but emphasizes the importance of innovation and breadth of technology as key competitive advantages [36] Question: What is the growth profile of the services business? - The services business is expected to grow at a double-digit rate, with significant opportunities for improvement in efficiency and customer value [41]

Financial Performance - Net sales for the three months ended July 30, 2023 were $6.425 billion, compared to $6.520 billion for the same period in 2022[6] - Net income for the three months ended July 30, 2023 was $1.560 billion, compared to $1.606 billion for the same period in 2022[6] - Earnings per share (diluted) for the three months ended July 30, 2023 were $1.85, compared to $1.85 for the same period in 2022[6] - Comprehensive income for the three months ended July 30, 2023 was $1.572 billion, compared to $1.622 billion for the same period in 2022[8] - Net income for the nine months ended July 30, 2023, was $4.852 billion, compared to $4.934 billion for the same period in 2022[14][18] - Net sales for the nine months ended July 30, 2023, were $19.794 billion, compared to $19.036 billion for the same period in 2022[58] - Net income decreased to $1.560 billion in Q3 2023, down from $1.606 billion in Q3 2022, and to $4.852 billion for the nine months ended July 30, 2023, down from $4.934 billion in the same period last year[135] - Earnings per diluted share remained flat at $1.85 in Q3 2023 compared to Q3 2022, but increased to $5.73 for the nine months ended July 30, 2023, up from $5.59 in the same period last year[135] - Net sales for the three months ended July 30, 2023 were $6.425 billion, a 1% decrease compared to the same period in 2022[138] - Net sales for the nine months ended July 30, 2023 were $19.794 billion, a 4% increase compared to the same period in 2022[138] Balance Sheet and Cash Flow - Total assets as of July 30, 2023 were $30.410 billion, compared to $26.726 billion as of October 30, 2022[10] - Cash and cash equivalents as of July 30, 2023 were $6.025 billion, compared to $1.995 billion as of October 30, 2022[10] - Accounts receivable, net as of July 30, 2023 were $5.230 billion, compared to $6.068 billion as of October 30, 2022[10] - Total current liabilities as of July 30, 2023 were $8.224 billion, compared to $7.379 billion as of October 30, 2022[10] - Retained earnings as of July 30, 2023 were $41.988 billion, compared to $37.892 billion as of October 30, 2022[10] - Total stockholders' equity as of July 30, 2023 was $15.093 billion, compared to $12.194 billion as of October 30, 2022[10] - Cash provided by operating activities for the nine months ended July 30, 2023, was $7.145 billion, up from $4.542 billion in the same period in 2022[21] - Capital expenditures for the nine months ended July 30, 2023, were $797 million, compared to $564 million in the same period in 2022[21] - Cash used in investing activities for the nine months ended July 30, 2023, was $1.046 billion, compared to $1.167 billion in the same period in 2022[21] - Cash used in financing activities for the nine months ended July 30, 2023, was $2.066 billion, compared to $5.416 billion in the same period in 2022[21] - Cash, cash equivalents, and restricted cash equivalents at the end of the period on July 30, 2023, were $6.133 billion, up from $3.060 billion on July 31, 2022[21] - Total cash, cash equivalents and investments as of July 30, 2023 were $8,712 million, a $4,151 million increase compared to October 30, 2022[169] - Working capital was $10.7 billion as of July 30, 2023, compared to $8.5 billion as of October 30, 2022[173] - Days sales outstanding of accounts receivable increased to 74 days for the three months ended July 30, 2023, up from 69 days in the same period in 2022[173] - Cash used in investing activities during the nine months ended July 30, 2023 was $1.0 billion, including $797 million in capital expenditures and $25 million for acquisitions[174] - Cash used in financing activities during the nine months ended July 30, 2023 was $2.1 billion, primarily for repurchases of common stock ($1.5 billion) and dividends to stockholders ($707 million)[175] Segment Performance - Semiconductor Systems segment net sales for the nine months ended July 30, 2023 were $14.815 billion, with operating income of $5.299 billion[125] - Applied Global Services segment net sales for the nine months ended July 30, 2023 were $4.261 billion, with operating income of $1.226 billion[125] - Display and Adjacent Markets segment net sales for the nine months ended July 30, 2023 were $570 million, with operating income of $66 million[125] - Corporate and Other category reported an operating loss of $908 million for the nine months ended July 30, 2023[125] - Net sales in China decreased by 4% to $1.734 billion in Q3 2023 compared to $1.797 billion in Q3 2022, and by 28% to $4.284 billion for the nine months ended July 30, 2023, compared to $5.917 billion in the same period last year[126] - Net sales in the United States increased by 43% to $1.039 billion in Q3 2023 compared to $725 million in Q3 2022, and by 41% to $3.203 billion for the nine months ended July 30, 2023, compared to $2.274 billion in the same period last year[126] - Foundry, logic, and other applications accounted for 79% of Semiconductor Systems net sales in Q3 2023, up from 66% in Q3 2022, and 80% for the nine months ended July 30, 2023, up from 64% in the same period last year[127] - Flash memory sales decreased to 4% of Semiconductor Systems net sales in Q3 2023, down from 19% in Q3 2022, and to 6% for the nine months ended July 30, 2023, down from 16% in the same period last year[127] - Taiwan Semiconductor Manufacturing Company Limited accounted for 22% of net sales, and Samsung Electronics Co., Ltd. accounted for 17% of net sales for the nine months ended July 30, 2023[130] - Net sales for the Semiconductor Systems segment for the three months ended July 30, 2023 were $4,676 million, a $58 million decrease compared to the same period in the prior year[158] - Operating income for the Semiconductor Systems segment for the three months ended July 30, 2023 was $1,618 million, a $83 million decrease compared to the same period in the prior year[158] - Net sales for the Applied Global Services segment for the three months ended July 30, 2023 were $1,464 million, a $44 million increase compared to the same period in the prior year[163] - Net sales for the Display and Adjacent Markets segment for the three months ended July 30, 2023 were $235 million, a $98 million decrease compared to the same period in the prior year[166] Expenses and Costs - Cost of products sold for the three months ended July 30, 2023, was $3.449 billion, compared to $3.514 billion for the same period in 2022[57] - Research, development, and engineering expenses for the three months ended July 30, 2023, were $767 million, compared to $705 million for the same period in 2022[57] - Cost of products sold for the nine months ended July 30, 2023, was $10.579 billion, compared to $10.144 billion for the same period in 2022[58] - Research, development, and engineering expenses for the nine months ended July 30, 2023, were $2.313 billion, compared to $2.045 billion for the same period in 2022[58] - Research, Development and Engineering (RD&E) expenses increased by $62 million to $767 million for the three months ended July 30, 2023 compared to the same period in 2022[144] - Marketing and selling expenses increased by $13 million to $193 million for the three months ended July 30, 2023 compared to the same period in 2022[146] - General and administrative (G&A) expenses increased by $17 million to $214 million for the three months ended July 30, 2023 compared to the same period in 2022[149] - Interest expense for the three months ended July 30, 2023 was $60 million, a $4 million increase compared to the same period in the prior year[151] - Interest and other income (expense), net for the three months ended July 30, 2023 was $64 million, a $71 million increase compared to the same period in the prior year, driven by higher interest income and lower net loss on equity investments[151] - Provision for income taxes for the three months ended July 30, 2023 was $246 million, a $9 million decrease compared to the same period in the prior year[154] - Effective income tax rate for the three months ended July 30, 2023 was 13.6%, a 0.1 percentage point decrease compared to the same period in the prior year[154] Investments and Financial Instruments - Total short-term and long-term investments as of July 30, 2023 was $2.687 billion, compared to $2.566 billion as of October 30, 2022[33][36] - Total cash, cash equivalents, and investments as of July 30, 2023 was $8.712 billion, compared to $4.561 billion as of October 30, 2022[33][36] - Gross unrealized gains on equity investments as of July 30, 2023 was $129 million, compared to $149 million as of October 30, 2022[33][36] - Gross unrealized losses on equity investments as of July 30, 2023 was $38 million, compared to $30 million as of October 30, 2022[33][36] - Total fixed income securities as of July 30, 2023 was $1.857 billion, compared to $1.795 billion as of October 30, 2022[33][36] - Total equity investments as of July 30, 2023 was $830 million, compared to $771 million as of October 30, 2022[33][36] - Unrealized gain on publicly traded equity securities was $12 million for the three months ended July 30, 2023, compared to $3 million for the same period in 2022[43] - Total gain (loss) on equity investments, net was a loss of $2 million for the three months ended July 30, 2023, compared to a loss of $17 million for the same period in 2022[43] - Impairment losses on equity investments in privately held companies were $119 million during the nine months ended July 30, 2023, compared to no material losses in the same period in 2022[43] - Total available-for-sale debt security investments were $6.593 billion as of July 30, 2023, compared to $2.696 billion as of October 30, 2022[50] - Publicly traded equity securities were valued at $117 million as of July 30, 2023, compared to $122 million as of October 30, 2022[50] - The aggregate principal amount of long-term senior unsecured notes was $5.5 billion as of July 30, 2023, with an estimated fair value of $5.1 billion[52] - The total outstanding notional amounts of foreign exchange contracts were $1.8 billion as of July 30, 2023, compared to $2.1 billion as of October 30, 2022[54] - The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI was $15 million for the three months ended July 30, 2023, compared to $35 million for the same period in 2022[54] - The company's investment portfolio includes $1.9 billion in available-for-sale securities, with a hypothetical 100 basis point increase in interest rates resulting in a $25 million decrease in fair value[182] - A hypothetical 10% adverse change in foreign currency exchange rates would result in a $164 million decrease in the fair value of hedging contracts[183] - The company's senior unsecured notes outstanding as of July 30, 2023 totaled $5.5 billion, with a hypothetical 100 basis point decrease in interest rates increasing the fair value by $466 million[182] Shareholder Returns and Compensation - Dividends declared for the nine months ended July 30, 2023, were $0.90 per common share, totaling $756 million[14] - Share-based compensation for the nine months ended July 30, 2023, was $375 million, up from $314 million in the same period in 2022[14][18] - Common stock repurchases for the nine months ended July 30, 2023, amounted to $1.497 billion, compared to $4.603 billion in the same period in 2022[14][18] - The company repurchased 13 million shares of common stock for $1.497 billion during the nine months ended July 30, 2023, at an average price of $117.35 per share[103] - Dividends paid during the nine months ended July 30, 2023, totaled $707 million, compared to $650 million in the same period last year[104] - Total share-based compensation expense for the nine months ended July 30, 2023, was $375 million, up from $314 million in the same period last year[107] - The company had $13.4 billion remaining for future stock repurchases under its repurchase program as of July 30, 2023[102] - Total unrecognized compensation expense related to share-based awards as of July 30, 2023, was $854 million, with a weighted average recognition period of 2.7 years[107] - Outstanding shares as of July 30, 2023 increased to 12 million from 11 million as of October 30, 2022, with a weighted average fair value of $105.27 per share[109] - 0.8 million additional performance-based awards could be earned based on achievement of specified performance and/or market goals as of July 30, 2023[109] - The company issued a total of 1 million shares under the Employee Stock Purchase Plan (ESPP) in each of the nine months ended July 30, 2023 and July 31, 2022[111] Risks and Challenges - Supply chain constraints persisted in fiscal 2023, with some shortages expected to continue through the remainder of the fiscal year, impacting shipments to customers[136] - Additional U.S. export regulations in 2022 resulted in lower net sales in China for the Semiconductor Systems and Applied Global Services segments in the first nine months of fiscal 2023[137] - The company faces risks from global trade issues, including export regulations and tariffs, particularly affecting sales to China, Taiwan, Korea, and Japan[196] - In October 2022, new U.S. export regulations limited the market for certain products in China, adversely impacting revenues and increasing exposure to foreign competition[196] - The company's customer base is highly concentrated, with significant reliance on customers in China, Taiwan, Korea, and Japan, increasing volatility in results of operations[198] - Supply chain disruptions and shortages of parts and materials have adversely impacted manufacturing operations and the ability to meet customer demand[200] - The company is exposed to risks from uncertain global economic conditions, including inflation, interest rate fluctuations, and potential bank failures[192] - The company maintains an investment portfolio subject to credit, liquidity, market, and interest rate risks, which could be exacerbated by deteriorating financial market conditions[193] - The company faces challenges from geopolitical tensions, trade disputes, and regulatory changes, particularly in China and Korea, which represent significant portions of its business[197] - The company must manage costs and align its cost structure with market conditions during periods of decreasing demand to avoid adverse impacts on gross margins and earnings[191] - The company is required to obtain export licenses for certain products sold to China, which can be difficult, costly, and time-consuming, potentially limiting market access[196] - Cybersecurity incidents affecting suppliers could disrupt the supply chain, leading to delays in obtaining parts and materials, impacting manufacturing operations and customer demand[202] - Global trade issues, including export regulations and tariffs, particularly affecting the supply chain in China, could lead to increased costs and delays[202] - Volatility in the availability and cost of parts, commodities, energy, and shipping due to inflation, interest rates, or market conditions may increase operational costs[202] - A worldwide semiconductor shortage, driven by sharp increases in demand, could impact production and delivery timelines[202] - Limited availability of alternatives to per- and polyfluoroalkyl substances (PFAS) in parts and materials may pose challenges to manufacturing operations[202] - Natural disasters, climate change, or geopolitical events could disrupt manufacturing, research, and engineering operations globally[202] - Supplier failures in quality, cost, or intellectual property protection may force the company to transfer business to alternative suppliers, risking delays and additional costs[202] - Rapid increases in manufacturing capacity to meet demand could strain supply chain operations and negatively impact working capital[202] - Mismatch between actual and forecasted demand may result in excess or obsolete inventory charges[202] - Ongoing changes in the semiconductor and display industries could impact demand and profitability[203] Other Financial Metrics - Accumulated other comprehensive income (loss) as of July 30, 2023, was $(223) million,