Applied Materials (AMAT) Q1 FY10/24 Earnings Review
Applied Materials (AMAT) continues to outperform the semiconductor sector.
Growth is flat (it’s a good thing) and the market is showing signs of improvement.
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Our latest take on Applied Materials (AMAT)
by Jams O'Donnell
With 25,5 billion $ in revenue and 155 billion market cap, Applied Materials (AMAT) is the leading US supplier of semiconductor manufacturing equipment. It's hard to overstate AMAT's dominance of the market. Just like for Lam Research and ASML, Applied's own engineers are deeply entrenched in the R&D leading to new tools for new manufacturing and compute breakthroughs, they have visibility of years into the roadmaps of their customers. Their tools are sticky, performing hundreds of indispensable steps along the chip production line, dependent on the mothership for decade-long servicing and optimization. AMAT however has a much broader application base, and crucially at this time, they are much less exposed to memory sales than the competition. Their business can be broken down into three broad categories:
1.) Semiconductor Systems, the actual equipment, further divided in leading-edge ("inflections") and mature chip markets;
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