Applied Materials, Inc. (Nasdaq: AMAT) Q1 2024 Earnings Conference

By / / Applied Materials

The following is a summary of the Applied Materials, Inc. (AMAT) Q1 2024 Earnings Call Transcript:

Financial Performance:

  • Applied Materials reported Q1 2024 revenues at the high end of their guided range, marking a strong start.
  • Non-GAAP gross margin saw growth, landing at 47.9%, a 110 basis point increase from last year.
  • Non-GAAP net profit per share for Q1 grew by almost 5%, reaching $2.13.
  • Semiconductor Systems revenues were robust at $4.91 billion, while Applied Global Services saw an approximate 8% YoY gain, reaching nearly $1.8 billion.
  • Display segment reported revenues of $244 million with a non-GAAP operating profit of 10.2%.
  • For Q2, the company expects a non-GAAP EPS of $1.97, ± $0.18, with revenues forecasted to be $6.5 billion ± $400 million.

Business Progress:

  • The company is capitalizing on key industry inflections, particularly in AI, IoT, electric vehicles, and renewable energy.
  • Its focus on DRAM technologies like High-Bandwidth Memory (HBM) will cater to the AI Data Center space.
  • Applied Materials plans to increase their available market with innovations like Sculpta, a pattern shaping technology.
  • The company is forming partnerships with organizations like Leti and MIT to accelerate innovation in ICAPS and power electronics.
  • The company plans to invest $3 billion annually for R&D to devise new solutions for critical semiconductor manufacturing challenges.
  • The company looks forward to supporting upcoming inflections in AI, IoT, and renewable energy.
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