Applied Materials (AMAT) risk factors, FY2024 10-K

Applied Materials's FY2024 10-K, filed Dec 13, 2024, lists 27 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
273 groups
Section length
11k wordsItem 1A

Applied Materials's biggest risks in the FY2024 10-K

  • Applied Materials relies on cyclical semiconductor and display equipment markets with high customer concentration in Asia.

The risks most specific to Applied Materials

  • Business and Industry Risks

    The industries we serve can be volatile and difficult to predict

    Cyclical customer demand in the semiconductor and display industries creates volatility in our revenue and product demand.

  • Business and Industry Risks

    We are exposed to the risks of operating a global business

    International operations expose us to geographic concentration, with 86 percent of net revenue coming from outside the US in fiscal 2024.

  • Business and Industry Risks

    We are exposed to risks associated with a highly concentrated customer base

    A concentrated customer base in China, Taiwan, Korea, and Japan leaves us vulnerable to customer actions and export regulations.

  • Business and Industry Risks

    We are exposed to factors specific to the semiconductor industry

    Our profitability depends heavily on the Semiconductor Systems segment and Applied Global Services sales to semiconductor manufacturers.

  • Operational and Financial Risks

    Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. There is risk our conditional reduced tax rates may not be renewed

    Conditional reduced tax rates in Singapore will expire in fiscal 2025 and may not be renewed.

  • Operational and Financial Risks

    Our indebtedness and debt covenants could adversely affect our financial condition and business

    We had $6.2 billion in aggregate principal amount of senior unsecured notes outstanding as of October 27, 2024.

All 27 risk factors

Headings as the filing states them, in filing order.

Business and Industry Risks

  1. 01The industries we serve can be volatile and difficult to predict
  2. 02We are exposed to risks associated with an uncertain global economy
  3. 03We are exposed to the risks of operating a global business
  4. 04We are exposed to risks associated with a highly concentrated customer base
  5. 05Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory
  6. 06We are exposed to various factors that impact the industries in which we operate
  7. 07We are exposed to factors specific to the semiconductor industry
  8. 08We are exposed to factors specific to the display industry
  9. 09The industries in which we operate are highly competitive and subject to rapid technological and market changes
  10. 10We are exposed to risks related to government incentives and other agreements that may involve government entities
  11. 11We are exposed to risks associated with expanding into new and related markets and industries
  12. 12We are exposed to risks related to the use of artificial intelligence by us and our competitors

Operational and Financial Risks

  1. 13We are exposed to risks related to protection and enforcement of intellectual property rights
  2. 14We are exposed to cybersecurity threats and incidents
  3. 15We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures
  4. 16The ability to attract, retain and motivate key employees is vital to our success
  5. 17We operate in jurisdictions with complex and changing tax laws
  6. 18There have been a number of proposed changes in the tax laws that could have a material impact on our provision for
  7. 19Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. There is risk our conditional reduced tax rates may not be renewed
  8. 20Our indebtedness and debt covenants could adversely affect our financial condition and business
  9. 21Our business depends on the successful implementation and proper functioning of information systems we use
  10. 22We may incur impairment charges related to goodwill or long-lived assets
  11. 23We may not continue to declare cash dividends or repurchase our shares

Legal, Compliance, and Other Risks

  1. 24We are exposed to risks related to legal proceedings, claims and investigations
  2. 25We are exposed to risks related to the global regulatory environment
  3. 26Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance
  4. 27We are subject to risks associated with environmental, health and safety regulations

Other Applied Materials 10-Ks

  • FY2025 10-K risk factors
    27 risks3 new3 dropped15 reworded

    Applied Materials faces heightened trade policy uncertainty and tariff disputes between the U.S., China, and other countries impacting supply chains.

    Filed Dec 12, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.