Applied Materials expects to outperform amid AI buildout

13. Oct 2026

(AWP Alliance News) - Applied Materials Inc - Santa Clara, California-based semiconductor equipment maker - At an investor event, says it aims to outperform the wafer fab equipment market over the coming years amid the global AI infrastructure buildout. Projects wafer fab equipment spending to grow faster through 2030 than in the past decade, targeting over 2% of WFE share gain between 2025 and 2030. Sees higher profitability through 2030, with a non-GAAP gross margin target of 54% and a non-GAAP operating margin target of 40%. Further, commits to distributing 80% to 100% of free cash flow to shareholders over time.

"The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment," says Gary Dickerson, chief executive. "Applied Materials has built leadership in the fastest growing areas of the market that have the greatest impact on AI computing performance, power efficiency and cost, and our advanced services offerings enable chipmakers to increase yield and fab output. Our industry-leading capabilities position Applied for continued growth and outperformance in the years ahead."

Current stock price: USD457.65, down 8.0% in New York on Tuesday

12-month change: more than double

By John Robaina, Alliance News reporter

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