Applied Materials (AMAT) risk factors, FY2025 10-K

Applied Materials's FY2025 10-K, filed Dec 12, 2025, lists 27 risk factors in 3 groups. Against the prior year's 27: 3 new, 3 dropped, 15 substantially reworded.

Open AMAT in Gloom →
Applied Materials' chart, financials and news, free in your browser.Open AMAT in Gloom →
Risk factors listed
273 groups
New this year
3vs 27 last year
Dropped
3since the prior 10-K
Substantially reworded
15of those kept
Section length
10k wordsItem 1A

What the changes say

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

What changed since the prior 10-K

New

  • NewBusiness and Industry Risks

    We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes

    Tariffs and trade disputes between the U.S. and countries like China increase our material costs, component manufacturing complexity, and product pricing competitiveness.

  • NewBusiness and Industry Risks

    performance becoming significantly dependent on quarter-end production and delivery schedules

    Quarter-end delivery performance depends heavily on mitigating supply chain disruptions, geopolitical trade tensions, export regulations, and cybersecurity incidents.

  • NewOperational and Financial Risks

    We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030. There is risk our conditional reduced tax rates may not be renewed

    Conditional reduced tax rates in Singapore expire starting in fiscal 2030, and failure to meet requirements or global minimum tax implementation could increase our taxes.

Dropped

  • DroppedBusiness and Industry Risks

    We are exposed to factors specific to the semiconductor industry

  • DroppedOperational and Financial Risks

    There have been a number of proposed changes in the tax laws that could have a material impact on our provision for

  • DroppedOperational 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

Reworded

  • 85% rewrittenBusiness and Industry Risks

    Supply 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

    Changed 'Increases in demand' to 'Volatility in demand' as a driver of parts shortages affecting our manufacturing operations.

  • 81% rewrittenOperational and Financial Risks

    We operate in jurisdictions with complex and changing tax laws

    Added specific risks regarding enacted and proposed tax law changes potentially impacting our provision for income taxes and effective tax rate.

  • 81% rewrittenBusiness and Industry Risks

    We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry

    Streamlined industry factors to explicitly state reliance on Semiconductor Systems segment equipment sales and Applied Global Services revenue.

    Was: We are exposed to various factors that impact the industries in which we operate

  • 74% rewrittenBusiness and Industry Risks

    We are exposed to risks associated with an uncertain global economy

    Added tariffs, trade policies, bank failures, and potential customer cancellations, backlog reductions, and bad debt expenses to economic risk factors.

  • 73% rewrittenBusiness and Industry Risks

    We are exposed to factors specific to the display industry

    Refined wording to clarify that we are a supplier to the global display industry experiencing capital equipment investment volatility.

  • 50% rewrittenBusiness and Industry Risks

    The industries we serve can be volatile and difficult to predict

    Added explicit mention of Artificial Intelligence (AI) and related technologies as a significant demand driver for our industries.

  • 47% rewrittenBusiness and Industry Risks

    We are exposed to risks related to the use of AI by us and our competitors

    Added specific risks that AI algorithms, training methodologies, and biased datasets may cause errors in outputs.

    Was: We are exposed to risks related to the use of artificial intelligence by us and our competitors

  • 47% rewrittenLegal, Compliance and Other Risks

    We are exposed to risks related to the global regulatory environment

    Added that changing, inconsistent, or conflicting global laws and regulations create compliance challenges that divert management time and attention.

  • 39% rewrittenBusiness and Industry Risks

    We are exposed to the risks of operating a global business

  • 39% rewrittenBusiness and Industry Risks

    The industries in which we operate are highly competitive and subject to rapid technological and market changes

  • 31% rewrittenOperational and Financial Risks

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

  • 27% rewrittenOperational and Financial Risks

    We are exposed to cybersecurity threats and incidents

  • 27% rewrittenOperational and Financial Risks

    We may incur impairment charges related to goodwill or long-lived assets

  • 26% rewrittenBusiness and Industry Risks

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

  • 23% rewrittenOperational and Financial Risks

    We are exposed to risks related to protection and enforcement of intellectual property rights

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 predict50% rewritten
  2. 02We are exposed to risks associated with an uncertain global economy74% rewritten
  3. 03We are exposed to the risks of operating a global business39% rewritten
  4. 04We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputesNew
  5. 05We are exposed to risks associated with a highly concentrated customer base26% rewritten
  6. 06Supply 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 inventory85% rewritten
  7. 07performance becoming significantly dependent on quarter-end production and delivery schedulesNew
  8. 08We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry81% rewritten
  9. 09The industries in which we operate are highly competitive and subject to rapid technological and market changes39% rewritten
  10. 10We are exposed to risks related to government incentives and other agreements that may involve government entities
  11. 11We are exposed to factors specific to the display industry73% rewritten
  12. 12We are exposed to risks associated with expanding into new and related markets and industries
  13. 13We are exposed to risks related to the use of AI by us and our competitors47% rewritten

Operational and Financial Risks

  1. 14We are exposed to risks related to protection and enforcement of intellectual property rights23% rewritten
  2. 15We are exposed to cybersecurity threats and incidents27% rewritten
  3. 16We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures
  4. 17The ability to attract, retain and motivate key employees is vital to our success
  5. 18We operate in jurisdictions with complex and changing tax laws81% rewritten
  6. 19We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030. There is risk our conditional reduced tax rates may not be renewedNew
  7. 20Our indebtedness and debt covenants could adversely affect our financial condition and business31% rewritten
  8. 21Our business depends on the successful implementation and proper functioning of information systems we use
  9. 22We may incur impairment charges related to goodwill or long-lived assets27% rewritten
  10. 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 environment47% rewritten
  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

  • FY2024 10-K risk factors
    27 risks

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

    Filed Dec 13, 2024

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.