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Applied Materials (AMAT) Aids Patterning Portfolio With New Move

Applied Materials AMAT introduced a slew of new products in a bid to boost its patterning solutions portfolio.

Notably, the company launched the Sym3 Y Magnum etch system to improve chip performance and power consumption by integrating deposition and etch technology in the same chamber to increase yields and decrease line resistance.

Further, the company also introduced Producer XP Pioneer CVD (chemical vapor deposition) patterning film for advanced process nodes. It is built on a high-density carbon formula and adopted by leading memory manufacturers for DRAM patterning to maximize pattern elongation and maintain tight control of the original EUV pattern.

Additionally, the company strengthened its patterning solutions portfolio with the acquisition of Aselta Nanographics, a leader in design-based metrology using contours.

The acquisition will enable Aselta’s contour technology to combine with Applied Materials' VeritySEM CD-SEM system and PROVision eBeam metrology system, providing chipmakers with a unique end-to-end capability to gather vast amounts of data about patterning films and wafers.

Applied Materials is expected to gain solid traction across logic and memory companies on the back of its latest portfolio expansions.

Applied Materials, Inc. Price and Consensus

Applied Materials, Inc. Price and Consensus
Applied Materials, Inc. Price and Consensus

Applied Materials, Inc. price-consensus-chart | Applied Materials, Inc. Quote

Growing Focus on Patterning Solutions

Apart from the latest solutions, Applied Materials offers Vistara, its most significant wafer manufacturing platform innovation for memory customers manufacturing etch applications.

The platform provides flexibility, intelligence and sustainability to chipmakers, building on the company's semiconductor manufacturing platforms like Endura, Producer, Centura and Centris.

Applied Materials’ growing focus to bolster its patterning solutions portfolio will enable it to capitalize on growth opportunities present in the global patterning material market.

Per an imarc report, the global patterning material market is expected to reach $6.98 billion by 2028, witnessing a CAGR of 6.4% during the forecast period of 2023-2028.

Moreover, the company grew its market share from 10% to over 30% in patterning from $1.5 billion in 2013 to over $8 billion in 2023.

Expanding Overall Portfolio

The latest move bodes well with the company’s continuous efforts to strengthen its overall product portfolio. Its portfolio strength remains the key growth driver for the company. Its shares have gained 22.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 7.6%.

Recently, Applied Materials partnered with Alphabet’s GOOGL Google to develop advanced augmented reality (AR) technologies.

The collaboration will combine Applied Materials' materials engineering expertise with Alphabet's platforms, products and services to create lightweight visual display systems for AR experiences. The aim is to accelerate the development of multiple generations of products, applications and services.

Further, the company extended its long-term partnership with CEA-Leti to form a new joint lab that aims to develop materials engineering solutions using Applied Materials' wafer processing systems and CEA-Leti's performance evaluation capabilities, focusing on power consumption, performance and time to market.

All the above-mentioned endeavors are expected to drive its customer momentum, which, in turn, will aid its overall financial performance in the near term.

However, the weakening demand environment and geo-political tensions remain concerns for the company.

The Zacks Consensus Estimate for second-quarter fiscal 2024 revenues is pegged at $6.51 billion, indicating a year-over-year decline of 1.7%.

Zacks Rank & Other Stocks to Consider

Currently, Applied Materials carries a Zacks Rank #2 (Buy).

Some better-ranked stocks in the broader technology sector are BILL Holdings BILL and CrowdStrike CRWD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of BILL Holdings have lost 20.9% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.

Shares of CrowdStrike have surged 25.8% in the year-to-date period. The long-term earnings growth rate for CRWD is currently projected at 36.07%.

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