Applied Materials (AMAT) investor relations material

Keynote insights on AI and semiconductor innovation

• AI is described as the biggest inflection of our lifetimes, set to transform every industry and individual, with the current stage considered very early in its potential impact.

• Demand for compute is expected to rise continuously for decades, driven by both human and agent consumption, with AI as the primary growth engine for advanced logic, memory, and packaging.

• Approximately 80% of wafer fab equipment growth this year is attributed to AI-driven segments, including advanced logic, high bandwidth memory, and advanced packaging.

• High-velocity co-innovation across the technology stack, from materials to systems, is essential for maintaining competitiveness and accelerating time to market.

• Material innovation and integration with ecosystem partners are highlighted as critical to enabling new compute architectures for AI.

Strategic investments and future vision

• A $5 billion investment in the EPIC Center in Silicon Valley aims to revolutionize chipmaking by co-locating innovators and accelerating compute innovation.

• The EPIC Center is positioned as a technology incubator, enabling first access to materials innovations and fostering collaboration among customers, partners, and the supply chain.

• The vision for the next three to five years is to dramatically accelerate time to market for compute innovations, focusing on tokens per second per watt and cost per token.

• Commercialization at high yield and the ability to ramp new architectures quickly are seen as decisive factors for success in the industry.

• Enhanced R&D efficiency and high visibility into future technology needs are expected outcomes from deep engagement with architecture and integration innovators.

Industry challenges and opportunities

• The industry faces simultaneous shortages in compute, memory, networking, storage, and energy, making efficiency gains critical.

• Innovations in advanced logic, memory stacking, and advanced packaging are driving performance, power, and cost improvements.

• Co-innovation and partnerships are fundamental, as no single entity can drive the required pace of innovation alone.

• The race for AI compute leadership is described as the most important determinant of future winners and losers in the global market.

• The magnitude of value creation and opportunity in AI and semiconductors is unprecedented, with material innovation at the core.