Applied Materials, Inc.

Record momentum; AI infrastructure demand is the core driver - CEO said the global build-out of AI infrastructure plus Applied’s position in high-value AI semiconductor technologies is creating a strong multi-year outlook. - Management emphasized the market is shaped by two races: (1) *technology leadership* (tokens/sec per watt) and (2) *capacity* (advanced chips are in short supply), creating sustained demand for leading-edge fab tools and enabling services.

Strong results + raised confidence on 2026; outlook for 2027 even stronger - Q3 fiscal 2026 results: revenue $9.1B (+15% QoQ, +25% YoY); non-GAAP gross margin 50.4%; non-GAAP operating margin 34%; non-GAAP EPS $3.50 (+22% QoQ, +41% YoY). - Company also highlighted 13 consecutive quarters of YoY gross margin expansion. - Raised 2026 confidence: customers are getting creative to address clean-room space constraints and are pulling forward tool demand, leading to upward revisions to 2026 revenue growth forecast. - 2027 expectation: high confidence for another strong growth year, supported by longer-term commitments and rolling 8-quarter forecasts from largest customers (and management said some customer conversations extend toward 2030).

AI-driven revenue mix: DRAM (especially HBM) + leading-edge logic + advanced packaging - Semiconductor Systems revenue $7.0B (+18% QoQ, +27% YoY); DRAM revenue (incl. HBM packaging) +52% YoY to record levels. - Management expects particularly strong 2H calendar 2026 growth, especially DRAM, plus leading-edge logic and advanced packaging. - Strategic emphasis: leading-edge foundry logic, DRAM, and advanced packaging expected to represent ~80% of wafer fab equipment growth in 2026–2027. - Packaging outlook: company reiterated packaging revenues expected to grow >70% in calendar 2026.