Applied Materials Set to Outperform as AI Drives Sustained Demand for Wafer Fab Equipment
Key Highlights
- ➤Applied targets over 2 percentage points of WFE share gains from 2025 to 2030
- ➤Applied expects non-GAAP gross margin near 54% by 2030
- ➤Applied targets non-GAAP operating margin near 40% by 2030
- ➤Service revenue expected above $12 billion by 2030, growing at a mid-teens CAGR
- ➤Applied commits to distribute 80% to 100% of free cash flow over time
Expert Statements
Gary Dickerson, President and CEO of Applied Materials
“The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment”
Gary Dickerson, President and CEO of Applied Materials
“Applied Materials has built leadership in the fastest growing areas of the market that have the greatest impact on AI computing performance, power efficiency and cost, and our advanced services offerings enable chipmakers to increase yield and fab output. Our industry-leading capabilities position Applied for continued growth and outperformance in the years ahead.”
Brice Hill, Senior Vice President and CFO of Applied Materials
“For the past 10 years, Applied Materials has been making strategic investments to build the industry’s most enabling portfolio for AI computing.”
Brice Hill, Senior Vice President and CFO of Applied Materials
“As AI drives wafer fab equipment growth, we are focused on further increasing profitability and operating leverage while investing in R&D programs that will fuel our outperformance into the future.”
* Company expects strong multi-year growth as global AI infrastructure buildout fuels demand for leading-edge foundry-logic, DRAM and advanced packaging – areas where Applied has built market leadership * Expects wafer fab equipment (WFE) spending to grow faster through 2030 than over the past decade; targets more than 2 percentage points of WFE share gain from calendar 2025 to 2030 * Targets higher profitability through 2030 with non-GAAP gross margin target of approximately 54 percent and non-GAAP operating margin target of approximately 40 percent * Committed to distribute 80 to 100 percent of free cash flow to shareholders over time SAN FRANCISCO, Oct. 13, 2026 (GLOBE NEWSWIRE) -- At its 2026 SEMICON West Investor Breakfast Presentation held today, Applied Materials, Inc. presented its longer-term growth expectations and outlined how its leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.
Get started
Create a free account to read the full story.