Applied Materials Launches Next Generation Of Memory Design: 'A New Vector Of Innovation'


Applied Materials, Inc. AMAT hosted its AI Design Forum Tuesday in San Francisco, during which the company introduced its Endura platforms for manufacturing the next-gen of memories.

Although the market for these new products is likely to remain small in the near term, the launch strengthens the company’s footprint in new memory architectures, according to UBS.

The Analyst

UBS analyst Timothy Arcuri maintained a Neutral rating on Applied Materials with an unchanged $49 price target.

The Thesis

Applied Materials launched its Endura platforms, including the Endura Clover PVD platform targeting magnetic random access memory; the Endura Impulse PVD platform for producing resistive RAM and phase change RAM, Arcuri said in a Wednesday note. (See his track record here.) 

These technologies involve new materials that were previously difficult to manufacture in high volumes, the analyst said. 

The company’s AI Design Forum focused on how the larger semiconductor ecosystem deals with the explosion of data triggered by AI, he said.

The forum highlighted that increased collaboration and integration across the supply chain was required to introduce new architectures that achieve performance scaling in new ways, Arcuri said. 

"This opens up a new vector of innovation for the industry at a time when geo-political developments are causing deflationary headwinds." 

Price Action

Applied Materials shares were up 1.82% at $44.77 at the time of publication Wednesday. 

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Photo courtesy of Applied Materials. 

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