🐂 AMAT — Company Profile (Teaching)¶
Teaching site, not investment advice. Specific market cap / stock price / financial figures change frequently and are intentionally omitted; use the SEC + Yahoo Finance links below to pull real-time data yourself.
📌 Basics¶
| Dimension | Content | Source |
|---|---|---|
| Core business | Semiconductor wafer fabrication equipment — deposition (CVD / PVD / EPI / ALD) + some etch + CMP + ion implant + some inspection; WFE multi-tool leader (vs. ASML single-EUV specialist) | 10-K FY25 |
| Founded / HQ | 1967 / Santa Clara, California, USA | wiki |
| CEO | Gary Dickerson (since 2013/09) | DEF 14A |
| Primary listing | NASDAQ: AMAT | — |
| Fiscal year | Ends late October (FY25 ended 2025/10/26) | SEC EDGAR |
💡 Real-time market cap / share price / China revenue share: see SEC primary + IR links below.
🏭 Supply Chain Coordinates (Part 1-C6 framework)¶
Upstream (Who AMAT Depends On)¶
| Supplier | What flows | Key dependency |
|---|---|---|
| Global precision mechanical components (optics / valves / vacuum pumps / RF power, etc.) | High-precision components | Multi-source |
LITE Lumentum (note: LASR is nLIGHT, not Lumentum) / IPGP IPG / in-house RF power + plasma |
RF plasma etch parts (but LRCX is the etch leader, AMAT smaller in etch) | |
| US + global R&D talent | EUV-era process design requires continuous R&D |
Downstream (Who Depends on AMAT)¶
| Customer | Relationship | Concentration |
|---|---|---|
TSM |
Full process subsystems (CVD/PVD dominant) | Top-3 customer |
SSNLF Samsung (Foundry + Memory) |
Full process | Top-3 |
INTC |
Full process (share rises with 18A ramp) | Top-5 |
SKH + MU + Kioxia |
DRAM + NAND deposition processes | Key memory customers |
| Chinese customers (SMIC + CXMT + YMTC, etc.) | Mature node processes | 20-30% of AMAT revenue (export-control risk) |
Competitors¶
- Deposition (CVD/PVD/ALD):
TOELYTokyo Electron — main direct competitor in deposition - Etch:
LRCXLam (US, leader) +TOELY(Japan, secondary) - CMP: AMAT is the in-house leader (with EBARA 6361.T in Japan)
- Ion implant: AMAT (strong)
- Inspection:
KLAC(absolute leader, different segments) - EUV lithography:
ASML(full monopoly — AMAT does not do lithography)
💼 Business Model + Value Capture (Part 1-C7 view)¶
- Revenue mix: Semiconductor Systems (equipment sales) ~75% / Applied Global Services (maintenance + upgrades + spares) ~25% (recurring revenue, high GM)
- Gross margin: Overall ~47%; Services GM higher (~52%+); equipment GM lower
- Pricing power: Weaker than ASML (multi-vendor oligopoly), directly competing with LRCX/TOELY — medium
- Substitution difficulty: Medium-high — long customer qualification creates lock-in (but unlike ASML monopoly, AMAT has functional overlap with TOELY)
(For specific quarterly revenue / China revenue share / capex, see the latest SEC 10-Q.)
🏰 Moat Assessment (Part 3-C2 Buffett 5-step lens)¶
| Type | Strength (0-1) | Source |
|---|---|---|
| Brand | 0.6 | Veteran semiconductor equipment maker, peer to ASML / LRCX / KLAC |
| Switching cost | 0.7 | Long customer qualification + process integration |
| Network effects | 0.4 | Not classic network effects, but equipment ecosystem synergy |
| Scale + cost | 0.7 | Global sales + services network scale advantage |
Composite: 2.4 / 4 → diversified WFE equipment moat, but export controls + cyclicality are the core risks
⚠️ Key Reverse-Trigger Conditions (Part 3-C5 anti-thesis view)¶
- Trigger 1 (event): US / Netherlands / Japan further restrict mature-node equipment exports to China — AMAT China revenue (~25%) impact
- Trigger 2 (cyclical): Global semiconductor capex downturn (DRAM / commodity chip supply glut) — historical 18-24 month cycles
- Trigger 3 (quarterly): Hyperscaler AI capex growth slows — indirectly affects NVDA/AMD pulling TSM/Samsung equipment orders
- Trigger 4 (annual): TOELY / LRCX gain share — direct competition with Japanese equipment makers escalates
- Trigger 5 (low probability): Chinese domestic equipment (NAURA / AMEC) accelerates substitution — long-term China share decline
🔗 Teaching Cross-References¶
- Part 1-C5 · Hardware stack — WFE equipment is the physical foundation of fabs
- Part 1-C6 · 5 supply chain roles — AMAT is a major upstream equipment player
- Part 1-C9 · US-China geopolitics — Equipment export controls
- Patterns — #7 picks-and-shovels · #6 cyclical · #12 geopolitical risk
📚 SEC Primary Filings (look it up yourself)¶
- Latest 10-Q (quarterly) — segments + China revenue
- Latest 10-K (FY25 annual) — full annual data + customer concentration
- Investor relations — earnings calendar + historical data
- SEC EDGAR all filings — full filing history
Real-time quote: Yahoo Finance AMAT
Teaching use · numbers change — learn the method, not the specific figures · investment decisions are based on your own research + risk tolerance