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SANTA CLARA, Calif. - Applied Materials, Inc. (NASDAQ:AMAT), a leading provider of materials engineering solutions with a market capitalization of $126.5 billion, has declared a 15% increase in its quarterly cash dividend, continuing an eight-year trend of dividend growth. The new dividend of $0.46 per share is scheduled for distribution on June 12, 2025, to shareholders on record as of May 22, 2025. According to InvestingPro data, the company has maintained dividend payments for 21 consecutive years, demonstrating its commitment to shareholder returns.
In addition to the dividend hike, the company’s Board of Directors has authorized a new $10 billion share repurchase program. This move comes on top of the existing buyback plan, which still has approximately $7.6 billion remaining. According to Brice Hill, Applied Materials’ Senior Vice President and CFO, these actions reflect the company’s strong business outlook and its commitment to returning value to shareholders. The company’s robust financial position is evidenced by its healthy current ratio of 2.68 and strong cash flows that easily cover its debt obligations.
Over the last decade, Applied Materials has returned nearly 90% of its free cash flow to its shareholders, underscoring its financial strategy centered on shareholder returns. The company’s confidence in its ability to generate excess cash in the future has been a driving factor behind the newly announced financial measures. InvestingPro analysis reveals the company maintains strong profitability with a 47.7% gross margin and has delivered impressive returns on equity of 35%.
The company cautions that forward-looking statements regarding future dividend payments and share repurchase programs are not guarantees of future performance. They are subject to various risks and uncertainties. The actual outcomes will depend on a host of factors, including the company’s financial health, market conditions, and other business considerations.
Investors are reminded that the dividend and share repurchase plans are at the discretion of the Board of Directors and will be evaluated against the company’s financial performance, capital needs, and overall business environment.
This announcement is based on a press release statement from Applied Materials, Inc.
In other recent news, Broadcom has reported impressive first-quarter financial results, with an adjusted earnings per share of $1.60, surpassing the Bloomberg Consensus estimate of $1.50. The company’s adjusted net revenue also exceeded expectations, reaching $14.92 billion against a forecast of $14.61 billion. Broadcom’s positive outlook for AI chip production has had a favorable impact on Nvidia, which led premarket gains among the Magnificent Seven stocks. Meanwhile, Applied Materials has secured a $2 billion credit facility to enhance its financial flexibility, replacing a previous $1.5 billion credit line. The company also launched the SEMVision™ H20 system, a new tool designed to improve defect detection in semiconductor manufacturing, which has already been adopted by major chipmakers. Stifel analysts have maintained a Buy rating on Applied Materials, with a target price of $235, following the company’s better-than-expected first-quarter earnings. Lam Research introduced two new tools aimed at boosting AI chip production, highlighting its strategic focus on meeting the rising demand for semiconductors. These developments reflect the ongoing innovations and strategic financial moves within the semiconductor industry.
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