What Applied Materials, Inc. told the SEC could break it.

In fiscal 2025 two customers accounted for ~19% and ~15% of Applied Materials' net revenue respectively (both individually above 10%); concentration recurs (19%/15% also in FY2023; 12%/11% in FY2024).

“During fiscal 2025, two customers accounted for approximately 19 % and 15 %, respectively, of our net revenue. During fiscal 2024, two customers accounted for approximately 12 % and 11 %, respectively, of our net revenue.”

Approximately 89% of Applied Materials' fiscal 2025 net revenue was to customers outside the U.S., with a majority of products/services delivered to China, Taiwan and Korea — and a significant portion of equipment/supplies purchased from non-U.S. suppliers.

“A majority of our products and services are delivered to customers in jurisdictions outside of the United States, including China, Taiwan and Korea. We also purchase a significant portion of equipment and supplies from suppliers outside of the United States.”

Although Applied tries to assure parts are available from multiple qualified suppliers, this is not always possible — some key parts may be obtained only from a single qualified supplier or a limited group, creating manufacturing/service-interruption risk.

“Accordingly, some key parts may be obtained from only a qualified single supplier or a limited group of qualified suppliers.”

U.S. government export controls restricting sale of certain technologies to Chinese customers (plus China's local-manufacturer incentives) can disadvantage Applied vs. international competitors, while new tariffs (China and others) raise its costs and compress margins.

“Export controls enacted by the United States government that restrict the sale of certain technologies to customers in China may also provide an advantage to our international competitors.”