Investment Rating - The report maintains an "Overweight" rating for Applied Materials (AMAT) [1][4] Core Views - AI-driven downstream demand expansion is expected to drive growth, with GAA node revenue potentially doubling by 2025 [1] - The company's semiconductor equipment business remains strong, with ion implantation equipment sales reaching a record high [2] - The company is well-positioned to benefit from technological advancements in AI, IoT, EVs, and renewable energy, which are driving demand for more efficient and high-performance chips [2] - The company's global EPIC platform is expected to support next-generation technology innovation and commercialization [2] - The company's integrated solutions have grown from 20% of revenue in 2019 to 30% currently, with further growth expected in ICAPS-related applications [2] - The company is a leader in advanced logic and interconnect technologies, with a significant market share in GAA nodes and HBM stacking technologies [4] - The company expects GAA node revenue to exceed $2.5 billion in 2024 and potentially double by 2025 [4] - HBM packaging revenue is expected to be six times higher in 2024 compared to 2023, exceeding $600 million [4] - Advanced packaging product revenue is expected to grow to approximately $1.7 billion in 2024, with potential for further doubling [4] Financial Performance - FY24H1 revenue was $13.353 billion, down 0.12% YoY, while net income attributable to shareholders was $3.741 billion, up 13.64% YoY [1] - FY24Q2 revenue was $6.646 billion, up 0.24% YoY but down 0.91% QoQ, with net income attributable to shareholders at $1.722 billion, up 9.33% YoY but down 14.71% QoQ [1] - Semiconductor equipment revenue in FY24Q2 was $4.901 billion, down 2% YoY, accounting for 73.7% of total revenue [2] - AGS revenue in FY24Q2 was $1.530 billion, up 7% YoY, accounting for 23.0% of total revenue [2] - Display and related markets revenue in FY24Q2 was $179 million, up 7% YoY, accounting for 2.7% of total revenue [2] - Gross margin in FY24Q2 was 47.4%, up 0.7 percentage points YoY [2] - R&D expenses in FY24Q2 were 11.81% of revenue, up 0.12 percentage points YoY [2] - The company forecasts 2024-2026 net income attributable to shareholders of $6.923 billion, $7.872 billion, and $8.583 billion, respectively, with EPS of $8.36, $9.51, and $10.37 [4] Market Position and Growth Drivers - The company is a leader in transistor and interconnect material engineering, with a significant market share in GAA nodes and HBM stacking technologies [4] - The company expects to capture over 50% of the wafer fabrication equipment market as FinFET transitions to GAA [4] - The company anticipates a $1 billion increase in market share when backside power delivery goes into mass production [4] - The company's advanced packaging product portfolio is expected to grow significantly, driven by the widespread adoption of heterogeneous integration beyond AI data centers [4] Valuation and Projections - The company's 2024-2026 revenue is projected to be $26.815 billion, $29.455 billion, and $32.128 billion, respectively [1] - The company's 2024-2026 EPS is projected to be $8.36, $9.51, and $10.37, respectively [4] - The company's 2024-2026 P/E ratios are projected to be 28X, 25X, and 23X, respectively [4]

Sundry Photography Investment Thesis I believe Applied Materials (NASDAQ:AMAT) has demonstrated strong revenue and EPS growth and this is set to continue. Over the last 10 years, Applied Materials has seen strong revenue growth. In 2014, revenue totaled $7.51 billion; 2024 revenue is equal to $26.52 billion, a 353% increase. Looking forward, consensus revenue estimates have shown this compounding continuing, with revenue projected to increase from $26.94 billion in fiscal 2024 to $37.36 billion in fisca ...

The primary drivers of wafer fab equipment (WFE) demand are the strength of semiconductor demand and the existing capacity level. As far as the demand for semiconductors is concerned, it will be hugely boosted by ongoing transitions adopting AI, IoT, EVs and renewable energy. Government regulations and funding around the world will support this trend.The future of warfare is also in the most advanced electronics. Therefore, strategic necessity will continue to boost demand and production around the world, p ...

SANTA CLARA, Calif., June 13, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a quarterly cash dividend of $0.40 per share payable on the company's common stock. The dividend is payable on Sept. 12, 2024 to shareholders of record as of Aug. 22, 2024. The cash dividend is a key component of Applied's capital allocation strategy. In March 2023, Applied announced a 23-percent increase in the quarterly dividend, and in March 2024, Applied announced a 25- ...

SANTA CLARA, Calif., June 13, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a quarterly cash dividend of $0.40 per share payable on the company’s common stock. The dividend is payable on Sept. 12, 2024 to shareholders of record as of Aug. 22, 2024. The cash dividend is a key component of Applied’s capital allocation strategy. In March 2023, Applied announced a 23-percent increase in the quarterly dividend, and in March 2024, Applied announced a 25- ...

As Nvidia’s (NASDAQ:NVDA) growth goes hyperbolic, the semiconductor industry seems left behind. After all, much of Nvidia’s excitement and value generation comes from its dominance in the graphic process unit sector of semiconductor technology. However, Nvidia is a fabless company. This means it relies on highly sophisticated manufacturers, which, in turn, rely on suppliers to produce the GPUs that drive Nvidia’s market dominance. With Nvidia’s growth looking unlikely to slow down, according to analysts, ke ...

Applied Materials, Inc. (NASDAQ:AMAT) BofA Securities Global Technology Conference June 6, 2024 11:40 AM ET Company Participants Brice Hill - SVP & CFO Conference Call Participants Vivek Arya - Bank of America Vivek Arya Very good morning. Welcome to this session. I'm Vivek Arya from BofA’s semiconductor team. I'm absolutely delighted to have the team from Applied Materials join us this morning. Brice Hill, Senior Vice President and CFO of Applied Materials. What I thought we would do is go through some of ...

CHINA - 2023/11/03: In this photo illustration, the American semiconductor corporation Applied ... [+] Materials (NASDAQ: AMAT) logo seen displayed on a smartphone with an Artificial intelligence (AI) chip and symbol in the background. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesApplied Materials stock has had a solid year thus far, rising by over 31% year-to-date. In comparison, Applied’s semiconductor industry peer Texas Instrument ...

Applied Materials could be gearing up for a big run of earnings growth.When it comes to all things accelerated computing and artificial intelligence (AI), Nvidia (NVDA 4.89%) has rightfully stolen the spotlight. But an entire supply chain ecosystem is hard at work helping Nvidia bring its AI systems to market. And a company called Applied Materials (AMAT -0.41%) is one of those critical pieces of the supply chain.Applied is the largest U.S.-based supplier of semiconductor manufacturing equipment -- Netherla ...

Applied Materials, Inc. (NASDAQ:AMAT) Bernstein's 40th Annual Strategic Decisions Conference May 30, 2024 2:30 PM ET Company Participants Gary Dickerson - President and Chief Executive Officer Conference Call Participants Stacy Rasgon - Bernstein Stacy Rasgon Thank you for coming. Good afternoon, I'm Stacy Rasgon, I cover the U.S. Semiconductor and semi cap equipment space here at Bernstein. And it's been a great honor to introduce our guest, the President and CEO of Applied Materials, Mr. Gary Dickerson. B ...