Applied Materials Inc.

Strong Financial Performance: Applied Materials reported record earnings per share (EPS) of $2.39, up 14% year-over-year (YOY) from last year, with total revenue of approximately $7.1 billion, marking a 7% increase YOY. Non-GAAP gross margin improved to 49.2%, reflecting favorable product mix and cost management.

Growth in Key Markets: The company is benefiting from robust investments in leading-edge foundry-logic and DRAM, with anticipated revenue growth of over 40% from advanced DRAM customers in 2025. The focus on AI technologies continues to propel demand, showcasing the company's alignment with key market trends.

Challenges in China: Trade restrictions have impacted Applied Materials' ability to compete in certain accounts in China, leading to decreased service revenue and lower overall growth in the region. The contribution of China to total revenue is expected to remain in the mid-20s percentage-wise.