Applied Materials, Inc. (AMAT) Goldman Sachs Communacopia and Technology Conference - (Transcript)

Company and Industry Overview * Company: Applied Materials, Inc. (NASDAQ: AMAT) * Industry: Semiconductor and semiconductor equipment * Key Executive: Gary Dickerson, President and CEO * Industry Focus: Energy-efficient computing, AI, EDGE, IoT, Industrial Automation, Robotics, EVs, Autonomous Vehicles, Renewable Energy Core Points and Arguments * Industry Focus: The semiconductor industry is currently focused on energy-efficient computing, driven by AI, EDGE, IoT, and other technologies. Datacenter wafer starts will surpass PCs and smartphones in the next few years. * Market Growth: The wafer fab equipment market is expected to reach $1 trillion in the future, with a compound annual growth rate of mid-teens or higher. Applied Materials is well-positioned to outgrow the overall market due to its leadership in key technologies. * **Key Technologies**: * **Gate-All-Around**: Applied Materials is leading in the development of Gate-All-Around technology, which offers a 30$2.5 billion in revenue for Applied Materials this year, with the potential to double next year. * Backside Power: This technology moves power lines from the front side of the wafer to the backside, offering up to 30% area savings and over 20% improvement in energy-efficient computing. * DRAM: Applied Materials has gained 10 points of DRAM share over the last 10 years and is well-positioned to capture more than 50% of the 4F-Squared technology inflection, which is expected to drive additional demand in DRAM and compute memory. * Advanced Packaging: Applied Materials has seen its Advanced Packaging business grow from $500 million to$1.7 billion in the past few years and expects it to double again over the next few years. * Integrated Solutions: Applied Materials has grown its integrated solutions business from 20% to 30% of revenue, offering a unique and connected portfolio of technologies that enable customers to move data efficiently through complex chip designs. * Services: Applied Materials' services business, which accounts for about 20% of revenue, has seen year-over-year growth for 20 consecutive quarters. The company is focused on driving service innovations to help customers optimize their processes and reduce costs. * AI: Applied Materials is using AI in various areas, including R&D, product development, operations, and supply chain. AI is expected to drive significant gains in productivity and enable the company to double its size over the next few years. Other Important Points * China: China represents about 32% of Applied Materials' revenue and is a key market for ICAPS technologies. The company expects the Chinese market to grow at a mid-to-high single-digit compound annual growth rate. * Competitive Advantage: Applied Materials' competitive advantage lies in its unique and connected portfolio of technologies, its ability to co-innovate with customers, and its focus on energy-efficient computing. * Future Outlook: Gary Dickerson is optimistic about the future of Applied Materials and the semiconductor industry, noting the company's focus on enabling magical innovations that will drive growth and value creation.