Applied Materials, Inc. (Nasdaq: AMAT) outlined multi-year financial targets at its 2026 SEMICON West Investor Breakfast Presentation, projecting growth in wafer fab equipment (WFE) spending through 2030 driven by AI infrastructure investment.

The company said it expects WFE spending to grow faster through 2030 than it did over the past decade, with leading-edge foundry-logic, DRAM and advanced packaging accounting for approximately 75% of that growth. Applied Materials is targeting more than 2 percentage points of WFE market share gain from 2025 to 2030.

On profitability, the company set a non-GAAP gross margin target of approximately 54% and a non-GAAP operating margin target of approximately 40% by 2030. Applied Materials also said it plans to distribute 80% to 100% of free cash flow to shareholders over time.

The company said its eBeam equipment portfolio is expected to generate $2 billion in revenue in calendar year 2026, and it projected service revenue to exceed $12 billion by 2030, representing a mid-teens compound annual growth rate. Service revenue is expected to grow more than 20% in the current calendar year.

"The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment," said Gary Dickerson, President and CEO of Applied Materials.

Applied Materials said it plans to more than double its research and development lab and manufacturing capacity by 2030. The company unveiled a new Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley, which it described as a facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. The company said 15 partnerships have been announced for the EPIC Center with chipmakers, systems companies, equipment partners and universities.

The company also noted recent manufacturing expansions in Austin, Texas, Singapore and Treviso, Italy.