Applied Materials Q3 2024 Earnings Call Summary

Applied Materials reported record revenues for Q3 2024, with earnings toward the high end of its guided range, and the company is forecasting continued growth in Q4, expecting revenue of $6.93B ± $400M and non-GAAP EPS of $2.18 ± $0.18. The company attributes its success to its positioning in the semiconductor market, particularly in AI and data center computing, which is driving strong demand for DRAM, High-Bandwidth Memory, and advanced packaging. This demand, combined with the industry's shift towards energy-efficient computing, is expected to grow Applied Materials' served market and share by requiring major device architecture inflections that are reliant on materials engineering. As a result, Applied Materials is accelerating its development of integrated solutions that can address higher-value challenges for its customers in leading-edge logic, high-performance DRAM, and advanced packaging. The company also highlighted its commitment to accelerating technology transfer and optimizing factory performance, as demonstrated by the continued growth of its services business (AGS), which reported its 20th consecutive quarter of year-on-year growth in Q3. Applied Materials' strong operational performance in areas such as manufacturing cycle times and on-time delivery supports its confidence in its ability to meet projected growth in the coming years.