The Next AI Chips Are About to Get Insanely Complex

Well, thank you. Happy to be here with you guys.

Big miracles.

Yeah. So I think AI is the biggest inflection of our lifetimes. I think it's going to transform every industry. It's going to touch every individual. So you know for me I look at how we're implementing AI inside Applied Materials. So we're innovating the way we innovate. We're innovating the way we bring products to market. We're innovating in our operations and supply chain in our services across the entire company. And the big focus for me is not headcount savings. It's bringing products and services to market, miracles to market faster and driving topline growth. And so what is super clear to me is that the opportunity is tremendous. We are bringing products to market faster. We have a service business that's growing at a 20% compound annual growth rate. And I could bring services to market because these tools are incredibly complex. Our customers want to innovate with AI computing with new materials and new architectures, but also they want to yield as fast as possible. It's really hard. So AI really is a game changer in our ability to bring those services and products to market faster and better. So I look at ourselves, where are we at? What inning are we in? We are bringing products to market this year that we wouldn't have been able to bring to market without AI. And I think this is just profound. I think that we will transform every part of the company and I think this technology is at the foundation of competitiveness for everybody. So it is the race for AI compute leadership is profound for every country for every market every company and every individual. So I believe we're very early in what's possible and again AI will have a profound impact across everything that we do and this race for AI compute leadership is the most important race that will determine who wins and loses.

Exactly.

Yes.

Mobile boom bust.

So I think this is memory as you said we've been through mainframe to PC and then you've got mobile social media this is way more pervasive than anything that we've ever seen and it's more profound it really is at the foundation of competitiveness for every industry and so you this the computing demand and you also have it's not compute just being consumed by people it's also compute being consumed by agents. And so again I just profoundly believe that the demand is going to continue to increase as we keep driving forward the new AI compute architectures and the innovation and there is more and more adoption of these technologies in every industry and in every company and I mentioned you know what we're doing inside Applied Materials there is zero question my mind at the foundation of competitiveness so yeah again I'm very very confident that this inflection will determine who wins and loses around the world and in every single market and every single industry and so the compute demand is going to keep going up there's zero zero question my mind from the data center to new edge AI types of applications you're going to see more demand for compute and again this is inevitable because the economics are so compelling.

Absolutely.

Absolutely and what we're seeing currently in our business again the race for compute leadership is the most important race. So in wafer fab equipment around 80% of the growth this year is really in the areas that are being driven by AI. So you have advanced logic memory including high bandwidth memory and advanced packaging the multi-chip connectivity. That's about 80% of the wafer fab equipment growth. And again, it's really being driven by AI. Now, also what's great for Applied Materials, we're number one in every one of those different segments that are enabling that AI compute innovation. So, we're seeing tremendous pull from all of the companies that we work with, our customers, and other companies across the ecosystem.