Applied Matls Inc Stock Price, News & Analysis

Applied Materials will host a webcast on May 20, 2021, at 4:30 p.m. ET to discuss its second quarter fiscal 2021 financial results. Investors can access the live webcast on the company's website, with a replay available later that evening. Applied Materials is a leading provider of materials engineering solutions for chip and display manufacturing, enabling innovations essential for future technology advancements.

Applied Materials has unveiled innovative materials engineering solutions aimed at enhancing DRAM performance, power efficiency, and cost efficiency. Key advancements include:

• Draco™ hard mask co-optimized with Sym3® Y etcher to improve capacitor scaling.
• Adoption of Black Diamond® low-k dielectric material to address interconnect scaling.
• Introduction of high-k metal gate transistors to boost performance in advanced DRAM designs.

These solutions are expected to significantly drive DRAM revenue for Applied over the next few years.

Applied Materials unveiled its strategy at the 2021 Investor Meeting, aiming to be the leading PPACt enablement company. The company plans to boost revenue by over 55% and non-GAAP EPS by more than 100% by fiscal 2024. They commit to returning 80-100% of free cash flow to shareholders. Key growth drivers include digital transformation, AI workloads, and a shift to subscription-based services. With a focus on expanding Semiconductor Systems revenue by over 60% and increasing the Display business's operating margin, Applied emphasizes innovation and sustainability in semiconductor technology.

Applied Materials has launched AI^x TM, an advanced platform aimed at enhancing semiconductor technology development and performance. This innovative tool provides real-time insights across semiconductor processes, allowing engineers to optimize numerous variables to improve power, area-cost, and time to market (PPACt). The platform integrates capabilities across all Applied Materials equipment and is expected to cut development time in half and enhance process efficiency by a third. Already in use for logic and memory chips, AI^x transforms data analytics in semiconductor lifecycle management.

Applied Materials will hold its 2021 Investor Meeting on April 6, showcasing plans to enhance customer technology growth in the AI era. Executives will discuss innovative solutions that improve semiconductors' power, performance, area-cost, and time to market (PPACt) as traditional Moore's Law scaling slows. Updates on financial outlook and key ESG initiatives will also be provided. The event features presentations from top executives and insights from leading customers, starting at 11 a.m. ET.

Applied Materials announced the termination of its share purchase agreement with Kokusai Electric Corporation due to lack of timely approval from Chinese regulators. As a result, Applied will pay KKR a termination fee of $154 million. CEO Gary Dickerson expressed disappointment but noted a strong future outlook, emphasizing the company's potential for growth and cash returns to shareholders. The company's leadership in materials engineering solutions positions it well within the semiconductor and display manufacturing sectors.

Applied Materials announced a new stock buyback authorization of $7.5 billion, supplementing the existing $1.3 billion remaining. This decision follows the termination of the amended share purchase agreement with KKR HKE Investment L.P. concerning Kokusai Electric Corporation, due to regulatory approval delays in China. If timely approval isn’t received by March 26, 2021, a termination fee of $154 million will be payable. The company plans to discuss its broader capital allocation strategies at the upcoming investor meeting.

Applied Materials has launched the Enlight optical wafer inspection system, enhancing yield data capture with new optics and ExtractAI technology. This system is designed to help semiconductor manufacturers expedite node development and improve profitability by effectively identifying yield-killing defects. The Enlight system is touted as the fastest-ramping inspection system in the company's history, offering a 3x reduction in cost for defect detection compared to competitors. This innovation is already in production with leading-edge customers worldwide.