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Applied Materials: How ICAPS, PVD Innovation, & AI Packaging Are Expanding Its Moat!

Applied Materials recently concluded their fiscal year of 2025 with encouraging results, achieving record highs in revenue, gross margin dollars, operating profit, and earnings per share, despite facing significant headwinds. The company reported a 4% year-over-year growth in revenue to $28.4 billion. Notably, the Semiconductor Systems and Applied Global Services (AGS) divisions posted record revenues, even amidst tightened trade restrictions that notably impacted their market presence in China. On the positive side, Applied Materials continues to maintain strong leadership, particularly in areas aligned with the AI and semiconductor industry trends. The company’s strong positioning in leading-edge foundry/logic, DRAM, and advanced packaging—segments anticipated to experience robust growth due to AI demand—is a significant advantage. The company’s inflection-focused innovation strategy is designed to meet future demands by preemptively developing solutions for emerging technology challenges.