$AMAT is targeting 54% gross margins and 40% operating margins by 2030 while planning to return ~90% of FCF to shareholders.
A big part of that comes from service revenue expected to exceed $12B as chipmakers keep maintaining and upgrading existing equipment giving Applied more recurring revenue even when new equipment spending slows.
Applied is also expanding into $KLAC inspection market with its eBeam business expected to reach $2B this year while doubling R&D and manufacturing capacity to support really complex AI chips, HBM and advanced packaging.
A big part of that comes from service revenue expected to exceed $12B as chipmakers keep maintaining and upgrading existing equipment giving Applied more recurring revenue even when new equipment spending slows.
Applied is also expanding into $KLAC inspection market with its eBeam business expected to reach $2B this year while doubling R&D and manufacturing capacity to support really complex AI chips, HBM and advanced packaging.