Applied Materials (AMAT)
Deposition, etch, CMP systems. Core front-end fab equipment supplier.
- Ticker: AMAT
- Sector: fab equipment (deposition etch)
Applied Materials (AMAT) is a tracked supply-chain name in the data-center buildout in the fab equipment sector. Data Center Index tracks Applied Materials's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Applied Materials data center thesis
Applied Materials is the broadest fab-equipment vendor, with leading positions in deposition, etch, ion implant, and CMP across both leading-edge logic and memory. FY25 revenue hit $28.4B with $8.3B operating income and 49% gross margin, and the FY25 capex bump to $2.3B (nearly 2x FY24) signals AMAT is funding its own next-node tool roadmap to keep pace with TSMC/Samsung/SK Hynix demand.
Bull case
- AMAT is the most diversified WFE pick: gate-all-around transistors at 2nm, advanced packaging (hybrid bonding), and HBM all pull AMAT tools at incrementally higher dollar content per wafer.
- Service revenue (~25%+ of total) is recurring and tied to installed base, which gives AMAT a margin floor that pure-cycle tool vendors lack when WFE digests.
- Hyperscaler-driven advanced-packaging investment (CoWoS, SoIC) is brand-new TAM that AMATs ICAPS plus SemiVision lines were positioned for years before the AI cycle arrived.
Bear case
- China-mature-node revenue is structurally larger for AMAT than for ASML/KLAC; if US export rules extend to the trailing-edge ICAPS line, AMAT takes the largest absolute hit.
- WFE cycle digestion: AMAT revenue tracking sideways at $27-28B for three years shows that leading-edge growth is being offset by China softness; investors are paying a leading-edge multiple for a balanced business.
- Up 182% in 12 months and 99% of 52-week range; the multiple now prices in perfect 2nm + HBM + packaging execution with no China step-down.
Applied Materials revenue and capex
In fiscal 2025, Applied Materials reported revenue of $28.4B, capital spending of $2.3B and operating income of $8.3B.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $28.4B | $2.3B | $8.3B |
| 2024 | $27.2B | $1.2B | $7.9B |
| 2023 | $26.5B | $1.1B | $7.7B |