Applied Materials Inc Goldman Sachs Communacopia + Technology Conference 2026

Welcome, Gary. Thank you, Jim.

Yeah. As you said, AI, especially data center, is an enormous driver for our business. One statistic I thought was interesting, if you look at leading-edge foundry, you go back a few years ago, smartphone wafer starts were 4 times larger than data center. Today, they are one to one, and in a couple of years, it will be two to one data center versus smartphone. For sure, AI and data center are by far the biggest drivers. Relative to the technologies that are critical for AI data center, the fastest-growing segments, 80% of wafer fab equipment growth this year is leading foundry logic, DRAM, including High-Bandwidth Memory and advanced packaging. Again, that is 80% of the wafer fab equipment growth this year, and we see that same mix in 2027 and going forward. Relative to our customers, we have been continually increasing our revenue forecast for 2026.

In February, we said greater than 20% revenue growth. In May, we said greater than 30% revenue growth. Now we're approaching 40% revenue growth in what we've communicated here recently, and both our near-term and longer-term outlook has been growing. One of the big drivers this year is agentic AI, so you have agents consuming tokens and compute, and that's driving increase in our longer-term WFE forecast, especially around CPUs and DRAM. We've seen that continual increase. Then relative to all of our discussions with customers, Applied is in a great position because all of those fastest-growing segments of the market are areas where Applied has clear leadership, and we're gaining share through those inflections. Customers want to make sure that from an operation, supply chain, capability standpoint, we're ready. Our trained service engineers are ready.

We do have this eight-quarter forecast, rolling eight-quarter forecast, and longer-term commitments from our customers. Again, that has continually went up, as we progress through the years. We even have discussions with customers all the way through 2030. My view is AI compute demand is going to remain very strong for many years going forward into the future. I look at Applied Materials and the way we're using AI, in innovation, product development, operations, supply chain. We have thousands of engineers in our field operations, service, and process engineers, and it's just a game changer. Then for me, what is most important, we will drive tremendous productivity improvements inside Applied Materials, but way more important than that is our ability to bring multi-billion-dollar products to market faster and also very valuable service innovations to market faster.

I think, again, AI is the biggest technology inflection I've ever seen in my life. If you look going forward with agentic physical AI, again, you're going to see increased compute demand, and the need for compute innovation tokens per second per watt has also never been greater. The position for Applied enabling these inflections is also a great tailwind for the company.

Yeah. I think it is pervasiveness of demand. I look through my career, I am an engineer, been innovating at three different companies, in the industry. I have never seen a driver that is as broad and pervasive as what we are seeing today. Certainly, when we went to mobile social media, everybody has a computer and a camera in their pocket. That increased the demand. AI is a whole different level of demand driver. When we look out for a number of years, again, it is just so disruptive and fundamental to every single industry. My view is that companies that are not adopting this technology will be left behind. The growth, agentic AI is adding additional WFE growth going forward. Physical AI in the future will add more compute demand going forward. I do not really spend time worrying about macro effects over a near term.

Again, for me, it is very clear this compute demand is going to be strong secular growth over many years going forward.