Applied Materials Outlines 2030 AI-Driven Growth Targets: Market Share Up 2 Points, Gross Margin at 54%
Applied Materials sets long-term financial and market share goals, emphasizing that AI demand will drive wafer fab equipment expansion and margin improvements.
ImportanceMaterialEvidenceE3 inspectableWrite-upQuick
At its SEMICON West event, Applied Materials outlined a long-term strategy expecting to gain more than two percentage points of wafer-fab-equipment (WFE) market share by 2030, driven by artificial intelligence demand.
CFO Brice Hill noted that the company's revenue reached $34.3 billion over the last decade with a 12.2% compound annual growth rate, while non-GAAP gross margins expanded to 50%. For 2030, the company targets a 54% non-GAAP gross margin, a 40% operating margin, and over $12 billion in service revenue.
Prabu Raja, President of Semiconductor Products Group, stated that leading-edge logic, DRAM, and advanced packaging are expected to account for roughly 75% of incremental industry growth. In High-Bandwidth Memory (HBM) packaging, the company anticipates related revenue exceeding $1 billion this year and plans to double its addressable market through hybrid bonding technology.
CEO Gary Dickerson said agentic AI computing configurations can consume two to four times as many wafers as generative AI setups. The company plans to more than double its laboratory and manufacturing capacity and return 80% to 100% of free cash flow to shareholders over time.