AMATApplied Materials, Inc.

“In advanced packaging, Applied is also the overall leader with strong positions in high-bandwidth memory and 3D chiplet stacking. We expect to grow our packaging revenues more than 50% in calendar 2026 and are very well positioned at upcoming packaging inflections.”

“we expect these three areas to account for more than 80% of the year-on-year growth in total wafer fab equipment spending in 2026 and see a similar profile in 2027.”

“we now expect our semiconductor equipment business will grow more than 30% this calendar year.”

“we have more than 35,000 chambers connected to our proprietary AIx software capabilities that use AI-powered monitoring, diagnostics and analytics.”

“today, we have more than 35,000 AI users across our global workforce. We are deploying AI to drive new scientific breakthroughs, accelerate research and development programs, optimize factory and supply chain operations, increase innovation and productivity and services and automate workflows across our corporate functions. This enables us to redirect resources towards higher value work and grow the business significantly faster than our headcount.”

“this is really helping us to drive our service growth rate at a higher pace than we've seen in the past or even that we were anticipating in the past. And that's where I would also come back to how we're implementing AI inside Applied Materials. We have all of these connected chambers. Most of them are connected remotely, so we can have instantaneous experts connected into all of those different chambers.”

“Publicly available data indicates that global token generation has increased more than threefold in just the past three months. Importantly, AI demand is not only growing rapidly, it's also diversifying. Since the beginning of the year, there has been a meaningful increase in agentic applications, which layer on top of continued growth in generative AI training and inference workloads.”

“there's never been a time where output yield innovation is more valuable than today. And I mentioned earlier on the call that we have over 35,000 chambers connected to our AIx servers. So we're also driving service innovations with AI-enabled applications, predictive models to improve wafer fab output, yield and cost.”

“Earlier this week, we announced our EPIC co-development engagement with TSMC, who joined as a founding partner together with Micron, Samsung and SK Hynix. We're also excited to announce our first 3 EPIC university partnerships with ASU, RPI and Stanford as well as the development partner agreement with Advantest.”

“all of our customers and the entire ecosystem earlier is in a race for leadership or AI computing. That is really driving our businesses in leading-edge foundry logic, DRAM, high-bandwidth memory and advanced packaging. And really, when you think about architecture innovation, Applied's material innovations are really at the foundation of all of those architecture innovations across all of those fast-growing segments.”

“Agentic AI models do more than respond to queries, they plan, reason and execute tasks autonomously. They therefore require a computing architecture that is more CPU-intensive, while also increasing demand for DRAM and NAND. As agentic AI applications grow, they provide an additional tailwind for wafer fab equipment.”

“we're modeling incremental CPU demand, incremental DRAM and NAND demand, that's a meaningful increase on top of what we had been forecasting previously. And then you go beyond that with physical AI coming in the future, we think this demand environment is going to continue strong for a number of years.”

“The momentum in our business is being driven by three key factors: first, the rapid global build-out of AI computing infrastructure. Second, Applied's leadership positions in the most enabling and highest value areas of the market, particularly leading-edge foundry logic, DRAM and advanced packaging.”

“We don't think it's too early, Krish. I think we think it's secular growth. AI is the headline workload that's driving the secular growth. So we think you'll see more and more capacity plans from customers.”

“AI is driving wafer fab equipment spending to the areas where Applied has been investing the most and we see the positive mix continuing in the second half of the calendar year and well beyond.”

“we are using the benefits of the AI technologies we enable to accelerate innovation and revenue generation and increase operating leverage and shareholder returns.”