Reasonable to assume this will be positive for UDC
August 22, 2025 — 11:06 am
Written by Zacks Equity Research for Zacks->
Applied Materials’ AMAT display and adjacent segment has experienced rapid growth in the past two quarters. In the third quarter of fiscal 2025, the display and adjacent segment grew 4.8% year over year, while it jumped 44.7% year over year in the previous quarter.
The non-GAAP operating margin of this segment was 23.6%. This improvement is on the back of expanding adoption of organic light emitting diodes (OLED) screens in consumer devices. As the demand for advanced televisions, high-resolution displays for smartphones, laptops, monitors and tablets keeps pouring in, AMAT’s display segment will keep gaining traction.
Advanced form factors like thin, light, curved and flexible displays, and new use cases like augmented and virtual reality will also push AMAT’s display segment. AMAT expects its fourth-quarter 2025 display and adjacent revenues to come at $350 million, indicating a significant 66% year-over-year growth.
This growth is supported by Applied Materials’ MAX OLED technology, which will enable it to create large OLED screens known for their superior brightness, flexibility, and durability on much larger glass panels. The technology uses a maskless pixel-deposition process that enhances brightness up to threefold, resolution up to 2.5 times, while keeping the energy use down by more than 30%, all the while increasing the display lifespan up to five times. |
