Background of Applied Materials Inc
Applied Materials Inc is an American corporation that supplies equipment, services, and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones, and televisions, as well as solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging, and other applications.
Applied Materials Inc operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
The Semiconductor Systems segment develops, manufactures, and sells manufacturing equipment used to fabricate semiconductor chips or integrated circuits and offers various technologies and inspection tools. The Applied Global Services segment provides integrated solutions to optimise equipment and factory automation software for semiconductor, display, and other products.
The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays, organic light-emitting diodes, and other display technologies. Applied Materials Inc is headquartered in Santa Clara, California, in Silicon Valley and has a rich history that dates to 1967.
Applied Materials Inc was founded in 1967 by Michael A. McNeilly and others and went public in 1972. In the following years it diversified, until James Morgan became CEO in 1976 and returned the company’s focus to its core business of semiconductor manufacturing equipment. By 1978, sales increased by 17% and in 1984, Applied Materials Inc became the first US semiconductor equipment manufacturer to open its own technology center in Japan and the first semiconductor equipment company to operate a service center in China.
In 1987, Applied Materials Inc introduced the Precision 5000 CVD machine, which differed from existing machines by incorporating diverse processes into a single machine that had multiple process chambers and in 1993, the Precision 5000 was inducted into the Smithsonian Institution’s permanent collection of Information Age technology. In 1996, Applied Materials Inc acquired two Israeli companies – Opal Technologies and Orbot Instruments for $175 million and $110 million, respectively.
In 2000, Applied Materials Inc purchased Etec Systems, Inc., in 2001 they acquired Israeli company Oramir Semiconductor Equipment Ltd., a supplier of laser cleaning technologies for semiconductor wafers and in 2008, the Italian company Baccini, a designer of tools used in manufacturing solar cells. Applied Materials Inc opened its Solar Technology Centre, the world’s largest commercial solar energy research and development facility, in 2009 in Xi’an, China.
Applied Materials Inc acquired Semitool Inc. in December 2009 and Varian Semiconductor in 2011. Applied Materials Inc was named among FORTUNE World’s Most Admired Companies in 2018.
Applied Materials Inc oversees a high-value product portfolio which is active in three major business sectors: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. Applied Materials Inc also operates a venture investing arm called Applied Ventures.Today, Applied Materials Inc is truly one of the most valuable Technology company in the world with a market capitalization of US$ 126.522 billion recorded in July 2025. In 2025 the total staff compliment for Applied Materials Inc was more than 24,800.
Applied Materials Inc Shares Growth Driver
Applied Materials Inc seems to be at the beginning of a major semiconductor investment cycle. Known for selling chip fabrication equipment, services, and software to semiconductor manufacturers, Applied Materials Inc has benefited from an increase in chip demand in the past five years.
Applied Materials Inc suggests that the move from an app-centric world to a data-centric world is going to trigger a massive bump in data generation. Applied Materials Inc estimates that the semiconductor industry’s revenue could jump from $466 billion generated in 2018 to $1 trillion in 2030.
Semiconductor manufacturers will have to spend a lot of money to bring their factories up to speed in a bid to meet the terrific end-market demand. As a result, annual spending on semiconductor manufacturing equipment is anticipated to jump from an estimated $62.4 billion last year to nearly $96 billion by 2025, according to a third-party estimate.
Applied Materials Inc stock has further upside potential, driven by expectations of steady demand growth and strong Q1 2025 results despite the pandemic. Demand growth is expected to continue in the near-term, driving AMAT’s revenues higher across all segments.
As lockdowns are being lifted and manufacturing capacity rising back to pre-pandemic levels, it is believed the company will see additional revenue and margin growth in the medium term. Investors can expect that things are about to get even better for Applied Materials Inc in the next five years as the world’s appetite for semiconductors is increasing rapidly. In fact, Applied Materials Inc may be sitting on stronger growth drivers now than it was five years ago.
Applied Materials Inc Investor Tip
Applied Materials Inc trades its shares on the NASDAQ Stock Market (NASDAQ) under the stock symbol AMAT. Applied Materials Inc forms part of both the NASDAQ-100 and S&P 500 component. An analysis on the market performance for the first quarter of 2025 indicated a total revenue of US$ 19,827,000,000 along with a gross profit of $ 9,087,000,000 and EBITDA of US$ 5,692,000,000.
Applied Materials finished fiscal 2025 with $17.2 billion in revenue, which was an increase of 18% over the prior year. The company’s adjusted earnings had increased 37% during fiscal 2025 and its adjusted gross and operating margins during the year stood at 45.1% and 26.3%, respectively.
Applied Materials Inc expects its top line to increase while earnings per share are expected to more than double in the base scenario, while the average annual revenue growth of all its business segments is expected to pick up the pace. The global spread of coronavirus and the resulting lockdowns in 2025 affected semiconductor demand and industrial activities but demand has gotten back on track, and this is evident from Applied Materials’ strong Q1 2025 earnings.
Operating expenses rose in line with revenue, and operating margins came in at roughly the same level as in Q1 2025. Wall Street expects the company’s earnings to grow at an annual rate of nearly 25% for the next five years making Applied Materials Inc an attractive growth stock that one can buy right now and for the next five years, at least.
Applied Materials Inc stock is a fantastic way to take advantage of the growth in semiconductor demand. Applied Materials Inc forecasts a substantial improvement in its financial performance in the next five years.
Data from this analysis should be weighed against forecasted performance during this pandemic, but for now, prices on shares and in turn dividends remain unaffected, which provides shareholders with assurance that they will have a strong buy-in on NASDAQ.
Sector
Technology
Industry
Semiconductor Equipment & Materials
Sub industry
Consumer electronics
How to buy Applied Materials Inc Shares Online
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FAQ
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Yes, you can.
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- Is Applied Materials Inc a good share to buy?
Yes, it is. Despite the growing concerns surrounding Covid-19, Applied Materials Inc. is continuing manufacturing, sales and delivery of its products and it is forecasted to be one of the very few automotive companies to make a significant rebound post-Covid-19.
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