Applied Materials announces new US$10bn share buyback plan
Applied Materials, which makes equipment to produce chips, said its board has approved a new US$10 billion (A$15 billion) share buyback, and also raised its quarterly dividend.
The newly approved buyback scheme adds to its previous authorisation, which had US$4.7 billion remaining at the end of the first quarter of fiscal 2023, the company said.
Applied Materials said its board also approved a 23 percent increase in its quarterly dividend, the largest in five years, to 32 US cents per share, up from 26 US cents per share.
The semiconductor industry has been facing a downturn in demand for chips used in personal computers and mobile devices, although, in a bright spot, demand from the data centre and automotive sectors has been steady.
Last month, Applied Materials forecast quarterly revenue that was largely above analysts’ expectations, saying it benefited from resilient demand for its tools used to make chips for automotive and artificial intelligence customers.
Applied Materials said its services business has become larger and more subscription-based helping its revenue and profitability become more predictable.