Why did AAM's net profit surge in Q4 despite high expenses?

Applied Materials, Inc. (AMAT) experienced a surge in net profit in Q4 despite high expenses due to several key factors: 1. **Stabilization in China's Revenue Mix and Semiconductor Segment Growth**: The company's semiconductor segment, which accounts for over 70% of revenue, saw a 6% growth, driven by the launch of innovative products like the MAX OLED™ solution and Sym3 Y Magnum etch system. This highlights AMAT's ability to capitalize on the "angstrom era" of semiconductor production, which has been a strategic focus. 2. **Diversified Operations**: AMAT's business model, which includes Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets, provides a stable revenue base. The Applied Global Services division, in particular, offers recurring revenue from maintenance and upgrades, bolstering financial resilience against industry downturns. In summary, AMAT's net profit surge in Q4 can be attributed to a combination of strategic product innovations, favorable market conditions, and effective business diversification, which together helped offset the impact of high expenses. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |AAM|AAM.N|AA Mission|2024 Q1||-6650|169| |AAM|AAM.N|AA Mission|2024 Q2||-118731|169| |AAM|AAM.N|AA Mission|2024 Q3||2230484|169| |AAM|AAM.N|AA Mission|2024 Q4||3750099|169|