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Applied Materials (NASDAQ: AMAT)
Q1 2024 Earnings Call
Feb 15, 2024, 4:30 p.m. ET
Summary:
Applied Materials reported their Q1 earnings for fiscal 2024, yielding strong revenue and exceeding earnings expectations.
Prepared Remarks:
Operator
Welcome to the Applied Materials earnings conference call. During the presentation, all participants will be in a listen-only mode. I would like to turn the conference over to Michael Sullivan, corporate vice president.
Please go ahead, sir.
Michael Sullivan — Corporate Vice President
Good afternoon, everyone, and thank you for joining Applied’s first quarter of fiscal 2024 earnings call. Joining me are Gary Dickerson, our president and CEO; and Brice Hill, our chief financial officer. Before we begin, I’d like to remind you that today’s call contains forward-looking statements, which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning the risks and uncertainties is contained in Applied’s most recent Form 10-K filing with the SEC.
Today’s call also includes non-GAAP financial measures. Reconciliations to GAAP measures are found in today’s earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com. Before we begin, I have a calendar announcement. On Monday evening, February 26, Applied will host a panel at the SPIE Advanced Lithography and Patterning Conference in San Jose.
Market Analysis:
In the world of semiconductors, Applied Materials is preparing for inflection-focused innovations as they anticipate significant growth in AI, IoT, Electric Vehicles, and Renewable Energy sectors.
Inflection-Focused Innovations:
Applied Materials has strategically positioned itself to capitalize on the growing market dynamics, reaccelerating capital investment by cloud companies, and increasing fab utilization across all device types. With a forecast of ICAPS demand slightly lower than 2023, the company is focusing on strengthening NAND revenues and driving the continued strength in the DRAM business, particularly in the production of high-bandwidth memory, expected to be a key enabler for AI data centers.
Leadership in the DRAM Market:
Applied Materials has significantly increased its share of the DRAM market through its inflection-focused approach. The company witnessed a more than 10-point increase in market share compared to a decade earlier and the DRAM revenues surpassed those of its two closest process equipment peers combined. With a strong position in Logic Technologies, particularly in DRAM Peripheral Circuitry Applications, and advanced packaging, Applied Materials forecasts substantial revenue growth.
Advancements in Transistor Technology:
Applied Materials anticipates the transition to high-volume production of gate-all-around transistors, a key inflection that can provide over a 30% improvement in a chip’s energy efficiency, particularly enabling for high-performance AI data centers.
