Applied Materials, Inc. (AMAT): history, ownership, mission, how it works & makes money

A Brief History of Applied Materials, Inc.

Company Overview

Applied Materials, Inc. (NASDAQ: AMAT) is a leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. The company has a rich history dating back to its founding in 1967, focusing on equipment, services, and software for the semiconductor, display, and related industries. As of 2024, Applied Materials continues to evolve, driven by technological advancements and a robust global market for semiconductor manufacturing.

Financial Performance

As of July 28, 2024, Applied Materials reported significant financial metrics reflecting its operational success:

Stock Performance

As of July 28, 2024, Applied Materials' stock demonstrated resilience and growth:

Capital Expenditures and Investments

In the nine months ending July 28, 2024, Applied Materials made substantial capital investments:

Dividends and Share Repurchase Program

Applied Materials has a strong commitment to returning value to shareholders:

As of July 28, 2024, the company had approximately $10.3 billion remaining in its stock repurchase program, which was initially authorized for $10 billion in March 2023.

Market Position and Outlook

Applied Materials operates in three reportable segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The company is well-positioned to leverage the growing demand for semiconductor manufacturing driven by advancements in AI, data centers, and high-bandwidth memory technologies.

A Who Owns Applied Materials, Inc. (AMAT)

Major Shareholders

As of 2024, Applied Materials, Inc. (AMAT) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:

Institutional Ownership

Institutional ownership remains significant for Applied Materials, with various mutual funds and pension funds holding substantial stakes. As of early 2024, institutional investors own approximately 83.4% of the total shares outstanding.

Executive Ownership

Executive officers and directors of Applied Materials also hold shares in the company, which aligns their interests with those of shareholders. The following are key executives and their ownership stakes:

Recent Stock Performance

As of July 28, 2024, Applied Materials' stock price stood at $222.82, reflecting a year-to-date increase of approximately 25%. The market capitalization is approximately $188 billion.

Stock Repurchase Program

In March 2023, Applied Materials announced a stock repurchase program with an authorization of $10 billion. As of July 28, 2024, approximately $10.3 billion remains available for future repurchases, indicating a strong commitment to returning capital to shareholders.

Applied Materials, Inc. (AMAT) Mission Statement

Overview of Mission Statement

The mission of Applied Materials, Inc. (AMAT) as of 2024 focuses on enabling the innovation and advancement of technology in the semiconductor and display industries. The company aims to provide the most advanced equipment, services, and software to facilitate the production of semiconductor chips, enhance display technology, and optimize manufacturing processes.

Financial Performance

As of July 28, 2024, Applied Materials reported significant financial metrics that reflect its operational success and market position:

Segment Performance

Applied Materials operates through three primary segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. Each segment plays a crucial role in fulfilling the company's mission by addressing specific market needs.

Semiconductor Systems

This segment focuses on the fabrication equipment needed for semiconductor production. Key financial figures include:

Applied Global Services

This segment provides integrated solutions to enhance equipment performance and productivity. Key financial figures include:

Display and Adjacent Markets

This segment encompasses products for display manufacturing. Key financial figures include:

Geographic Revenue Distribution

Applied Materials’ revenue is distributed globally, with significant contributions from various regions:

Investment and Shareholder Returns

Applied Materials is committed to returning value to its shareholders through dividends and stock repurchase programs. The company declared dividends of $1.12 per share in 2024 and has an ongoing stock repurchase program with approximately $10.3 billion available for future purchases as of July 28, 2024.

Conclusion of Mission Alignment

Applied Materials continues to align its mission with financial performance and operational excellence. The company’s focus on innovation, customer service, and strategic investments in technology positions it well for sustained growth in the semiconductor and display markets.

How Applied Materials, Inc. (AMAT) Works

Business Overview

Applied Materials, Inc. operates in three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The company focuses on providing advanced equipment and services for manufacturing semiconductor chips and displays.

Financial Performance

As of July 28, 2024, Applied Materials reported the following financial metrics:

Segment Performance

Net revenue and operating income for each reportable segment as of July 28, 2024:

Geographic Revenue Distribution

Net revenue by geographic region for the three months ended July 28, 2024:

Cash Flow and Liquidity

Cash flows from operating activities for the nine months ended July 28, 2024:

Stock Repurchase Program

As of July 28, 2024, Applied Materials had a stock repurchase program with the following details:

Balance Sheet Highlights

As of July 28, 2024, Applied Materials reported the following balance sheet metrics:

How Applied Materials, Inc. (AMAT) Makes Money

Revenue Segments

Applied Materials generates revenue through three primary segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. For the three months ended July 28, 2024, the net revenue from these segments was as follows:

Geographic Revenue Distribution

Revenue is also influenced by geographic distribution. For the three months ended July 28, 2024, the net revenue by region was as follows:

Financial Performance Overview

For the nine months ended July 28, 2024, Applied Materials reported the following financial metrics:

Segment Analysis

The Semiconductor Systems segment is the largest contributor to Applied Materials' revenue. Its performance for the three months ended July 28, 2024 is summarized below:

Research and Development Expenditure

Applied Materials invests significantly in research and development to maintain its competitive edge. The RD&E expenses for the three months ended July 28, 2024 were:

Cash Flow and Capital Expenditures

In terms of cash flow, Applied Materials reported the following for the nine months ended July 28, 2024:

Stock Repurchase Program

As of July 28, 2024, Applied Materials had a stock repurchase program with the following details:

Overall, Applied Materials leverages its diverse business segments and global reach to drive revenue growth and maintain profitability in the semiconductor and display manufacturing industries.