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,

Applied Materials, Inc. (NASDAQ:AMAT) Q3 2023 Earnings Conference Call August 17, 2023 4:30 PM ET Company Participants Michael Sullivan - Corporate Vice President Gary Dickerson - President and Chief Executive Officer Brice Hill - Senior Vice President and Chief Financial Officer Conference Call Participants Stacy Rasgon - Bernstein C.J. Muse - Evercore ISI Vivek Arya - Bank of America Merrill Lynch Krish Sankar - Cowen Toshiya Hari - Goldman Sachs Harlan Sur - JPMorgan Timothy Arcuri - UBS Securities Joe Q ...

Third Quarter Fiscal 2023 Earnings Presentation August 17, 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 product ...

Applied Materials, Inc. (NASDAQ:AMAT) BofA Securities Global Technology Conference Call June 7, 2023 4:20 PM ET Company Participants Brice Hill - SVP and CFO Conference Call Participants Vivek Arya - Bank of America Vivek Arya Welcome to this session. Really delighted to have the team from Applied Materials, Senior Vice President and CFO, Brice Hill joining us this afternoon. I’ll go through a list of my questions. But if you have anything you’d like to bring up, please feel free to raise your hand. And I’l ...

Applied Materials, Inc. (NASDAQ:AMAT) Bernstein's 39th Annual Strategic Decisions Conference 2023 June 1, 2023 1:30 PM ET Company Participants Gary Dickerson - President and Chief Executive Officer Conference Call Participants Stacy Rasgon - Bernstein Stacy Rasgon Thank you everyone for coming, oh, but you don't have a Safe Harbor statement or anything that I need to redo. Gary Dickerson I don't think so. Stacy Rasgon Okay, we're good. Gary Dickerson Alright. Awesome. Stacy Rasgon Sorry. Thank you for comin ...

Financial Performance - Net sales for the three months ended April 30, 2023, were $6,630 million, a 6.2% increase from $6,245 million for the same period in 2022[6] - Gross profit for the three months ended April 30, 2023, was $3,094 million, representing a gross margin of 46.7%, compared to $2,927 million and a margin of 46.9% in the prior year[6] - Net income for the three months ended April 30, 2023, was $1,575 million, up 2.5% from $1,536 million in the same period last year[8] - Earnings per share (EPS) for the three months ended April 30, 2023, were $1.87 (basic) and $1.86 (diluted), compared to $1.75 and $1.74, respectively, in the prior year[6] - The company reported a comprehensive income of $1,575 million for the three months ended April 30, 2023, compared to $1,539 million in the prior year[8] - Net income for the six months ended April 30, 2023, was $3,292 million, compared to $3,328 million for the same period in 2022, reflecting a decrease of 1.1%[22] - Cash provided by operating activities for the six months ended April 30, 2023, was $4,562 million, an increase of 48.5% from $3,073 million in the same period of 2022[22] - Total cash, cash equivalents, and restricted cash equivalents at the end of the period was $4,695 million, up from $3,435 million a year earlier, representing a 36.7% increase[22] - Total net sales for the three months ended April 30, 2023, were $6,630 million, a 6% increase from $6,245 million in the same period last year[139] - Net sales for the six months ended April 30, 2023, were $13,369 million, a 7% increase from $12,516 million for the same period in 2022[61] Assets and Liabilities - Total current assets as of April 30, 2023, increased to $17,773 million from $15,925 million as of October 30, 2022, reflecting a growth of 11.6%[11] - Total assets as of April 30, 2023, were $29,092 million, up from $26,726 million as of October 30, 2022, indicating an increase of 8.5%[11] - Total liabilities as of April 30, 2023, were $14,963 million, compared to $14,532 million as of October 30, 2022, representing a rise of 3.0%[11] - The balance of retained earnings as of April 30, 2023, was $40,696 million, up from $37,892 million as of October 30, 2022, reflecting an increase of 7.4%[22] - Total inventories as of April 30, 2023, were $5,940 million, slightly up from $5,932 million as of October 30, 2022[71] - Accounts receivable net of allowance for credit losses was $29 million as of April 30, 2023, consistent with the previous year[66] - Accounts payable decreased to $1,468 million as of April 30, 2023, down from $1,755 million on October 30, 2022, a reduction of 16.4%[74] Expenses - Research, development, and engineering expenses for the three months ended April 30, 2023, were $775 million, an increase from $686 million in the same period last year[6] - Research, development, and engineering expenses increased to $1,546 million for the six months ended April 30, 2023, compared to $1,340 million, marking a 15% rise[61] - Marketing and selling expenses increased by $21 million to $194 million for the three months ended April 30, 2023, driven by additional headcount and higher travel expenses[150] - General and Administrative (G&A) expenses rose by $40 million to $214 million, attributed to increased headcount and higher professional fees[152] - Interest expense for the six months ended April 30, 2023, was $120 million, compared to $115 million for the same period in 2022[61] - Interest expense for the three months ended April 30, 2023, was $61 million, a slight increase from $58 million in the prior year[154] Dividends and Stock Repurchases - The company declared dividends of $0.32 per common share during the quarter, totaling $268 million[14] - Dividends declared were $488 million, with a dividend of $0.58 per common share, compared to $226 million and $0.26 per share in the same period last year[22] - Common stock repurchases amounted to $1,054 million for the six months ended April 30, 2023, compared to $3,603 million in the same period of 2022, indicating a reduction of 70.7%[22] - The company has $13.9 billion remaining available for stock repurchases under its program as of April 30, 2023, following a $10 billion authorization in March 2023[105] - The average price paid per share for stock repurchases in the three months ended April 30, 2023, was $115.53, compared to $124.84 in the same period of 2022[106] Segment Performance - The Semiconductor Systems segment generated $4.98 billion in net sales and $1.76 billion in operating income for the three months ended April 30, 2023, compared to $4.46 billion and $1.65 billion in the same period last year, indicating a 11.7% increase in net sales[126] - The Applied Global Services segment reported net sales of $1.43 billion and operating income of $414 million for the three months ended April 30, 2023, compared to $1.38 billion and $422 million in the same period last year[126] - The Display and Adjacent Markets segment generated $168 million in net sales with an operating income of $21 million for the three months ended April 30, 2023, compared to $381 million and $81 million in the same period last year[126] - Net sales for the Applied Global Services segment were $1.428 billion for the three months ended April 30, 2023, a 3% increase from $1.383 billion in the same period last year[164] - Operating margin for the Applied Global Services segment decreased to 29.0% for the three months ended April 30, 2023, down from 30.5% in the prior year[164] Market Conditions and Risks - The company faces risks from uncertain global economic conditions, which could materially adversely impact operating results and customer demand[193] - Supply chain disruptions and increased costs due to rising inflation and interest rates may lead to reduced profitability and operational challenges[195] - The company is exposed to risks associated with a highly concentrated customer base, particularly in China, Taiwan, Japan, and Korea, which could lead to greater volatility in business performance[200] - Recent U.S. export regulations have limited the market for certain products, adversely impacting revenues and increasing exposure to foreign competition[198] - Difficulties in obtaining timely supply of parts and materials have resulted in manufacturing interruptions, potentially affecting the ability to meet customer demand[202] - The company must continue to invest in research and development despite economic uncertainties, which may negatively impact operating margins[195] - Economic and industry uncertainty may lead to customer bankruptcies or mergers, further affecting sales and inventory levels[193] - The company maintains an investment portfolio subject to market risks, which could be negatively impacted by deteriorating financial market conditions[195] - Ongoing supply chain constraints may increase logistics and parts costs, potentially leading to reduced demand for products[202] - The company faced supply chain disruptions due to a cybersecurity incident affecting a major supplier, leading to delays in parts and supplies[203] Accounting and Financial Management - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, effective in fiscal 2024 and 2025[26] - The company has early adoption permitted for certain accounting standards, indicating proactive financial management[26] - The effective tax rate for the second quarter of fiscal 2023 was 11.4%, down from 17.6% in the same period of fiscal 2022, primarily due to a reduction of deferred tax assets related to a new tax incentive in Singapore[117] - The company anticipates an increase in effective tax rates due to the capitalization of research and development expenditures starting in fiscal 2023[178]

Applied Materials, Inc. (NASDAQ:AMAT) Q2 2023 Earnings Conference Call May 18, 2023 4:30 PM ET Company Participants Michael Sullivan - Corporate Vice President Gary Dickerson - President and Chief Executive Officer Brice Hill - Senior Vice President and Chief Financial Officer Conference Call Participants Christopher Muse - Evercore ISI Stacy Rasgon - Sanford C. Bernstein & Co. Vivek Arya - Bank of America Merrill Lynch Krish Sankar - TD Cowen Atif Malik - Citigroup Inc. Mark Lipacis - Jefferies LLC Toshiya ...

Second Quarter Fiscal 2023 Earnings Presentation May 18, 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 products ...

Summary of Applied Materials, Inc. Conference Call Company Overview - **Company**: Applied Materials, Inc. (NASDAQ: AMAT) - **Industry**: Semiconductor Equipment Key Points and Arguments Industry Importance - The semiconductor industry is recognized as crucial, supported by government programs and incentives [3][4] - Applied Materials focuses on innovation in transistors and semiconductors, with a long-term vision of pushing technology 5 to 8 years ahead [3][4] Financial Performance - Recent earnings showed a rise in backlog, attributed to strong demand in ICAPs (IoT, communications, automotive, power, sensors) markets, which grew quickly last year and are accelerating this year [6][7] - The backlog increased due to supply chain issues, with expectations to normalize as supply chains improve [8][10] Market Dynamics - Memory market is currently weak, with declining prices and rising inventories, but there is confidence in a potential recovery due to ongoing demand for memory in AI and machine learning applications [36][38] - ICAPs are expected to sustain growth driven by electric vehicles, renewable energy, and sensor markets, with forecasts indicating 6% to 9% growth across various segments [33][35] Supply Chain Challenges - Supply chain issues have been exacerbated by COVID-19, leading to delays in fulfilling orders, but improvements are anticipated in the coming quarters [8][11] - The company is managing a complex supply chain with thousands of components, making it challenging to keep pace with industry growth [10][11] Technological Innovations - The Sculpta tool was highlighted as a significant innovation, allowing customers to modify silicon patterns, which can enhance efficiency and yield [26][28] - Applied Materials is well-positioned to benefit from advancements in gate-all-around transistors and other materials engineering innovations [25][27] China Market Impact - The company anticipates a mitigated impact of $1.5 billion to $2 billion from export controls affecting demand from China, with 17% of Q1 revenues coming from the region [19][20] - Chinese companies are investing in mature nodes to build their own foundry businesses, indicating ongoing demand despite regulatory challenges [20][21] Services Business Growth - The services segment is expected to grow, driven by an increasing installed base of tools and a focus on providing better uptime and yield for customers [39][41] - Despite export controls impacting services revenue, the company remains optimistic about growth prospects in this area [46][48] Future Outlook - Applied Materials forecasts a $1 trillion semiconductor industry by 2030, with expectations to grow faster than the overall industry due to increasing complexity in equipment and materials engineering innovations [16][17] - The company is cautious about 2024 forecasts but expects a recovery in memory and stable demand in ICAPs [17][18] Additional Important Insights - The company emphasizes a collaborative approach with customers to drive innovation and address future technology needs [24][30] - The services business is seen as a stable cash flow source, with subscription agreements contributing to financial stability [41][42]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 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 juris ...