Applied Materials’ DRAM Revenues Hit 34% in 2025 with New SK hynix, Micron Deals
Applied Materials’ DRAM segment reached 34% of Semiconductor Systems revenues in 2025 as customers accelerate investments in complex 6F2 nodes. The company formed R&D partnerships with SK hynix and Micron to develop advanced DRAM, high-bandwidth memory and 3D packaging for AI applications.
1. DRAM Business Growth
Applied Materials’ DRAM segment accounted for 34% of Semiconductor Systems revenues in 2025, driven by equipment intensity increases and AI-driven demand. The transition from 4F2 to complex 6F2 nodes and emerging 3D DRAM architectures is boosting demand for advanced deposition, etch and inspection tools.
2. Strategic Partnerships
The company entered long-term R&D collaborations with SK hynix to accelerate next-generation DRAM and high-bandwidth memory, and with Micron to develop advanced DRAM, HBM and NAND technologies. These partnerships aim to leverage joint expertise in new materials, advanced process technologies and 3D packaging for AI applications.
3. Competitive Landscape
Lam Research secured critical etch wins with its Akara system for 3D DRAM architectures, while ASML’s EUV lithography gains adoption among DRAM customers. Applied Materials’ broad wafer fabrication equipment portfolio, covering deposition, etch and inspection, positions it uniquely against competitors focusing solely on lithography or etch.
4. Financial Performance and Outlook
Applied Materials shares have risen 54.8% year-to-date, outperforming the semiconductor industry’s 13.6% growth, while trading at a forward price-to-sales ratio of 9.36X versus the industry average of 7.89X. Consensus earnings estimates for fiscal 2026 and 2027 imply growth of 17.9% and 26.4%, though both have been revised lower in the past 30 days.