Applied Materials Set to Outperform as AI Drives Sustained Demand for Wafer Fab Equipment
Applied Materials laid out long-term targets at its SEMICON West investor presentation, saying it expects wafer fab equipment spending to grow faster through 2030 than over the past decade on AI infrastructure demand. The company targets more than 2 percentage points of WFE market share gain from calendar 2025 to 2030, with leading-edge foundry-logic, DRAM and advanced packaging expected to drive roughly 75% of WFE growth. Financially, Applied set 2030 non-GAAP targets of approximately 54% gross margin and 40% operating margin, expects eBeam revenue of $2 billion in 2026, and sees service revenue exceeding $12 billion by 2030 at a mid-teens CAGR.
Key figures
- Guidance
- 2030 non-GAAP gross margin ~54%, non-GAAP operating margin ~40%; distribute 80-100% of FCF to shareholders over time; >2pp WFE share gain from CY2025 to 2030; service revenue to exceed $12B by 2030 at mid-teens CAGR, up >20% this year
- Epic partnerships
- 15
- Ebeam revenue cy2026
- $2 billion
- Wfe share gain target
- more than 2 percentage points (2025-2030)
- Gross margin target 2030
- approximately 54 percent
- Leading edge growth share
- around 75 percent of WFE growth 2025-2030
- Service revenue 2030 target
- $12 billion
- Operating margin target 2030
- approximately 40 percent
AI analysis
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AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.