Who Optimizes SG&A Costs Better? Applied Materials, Inc. or KLA Corporation

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of semiconductor manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Applied Materials, Inc. and KLA Corporation have demonstrated distinct strategies in optimizing these costs. From 2014 to 2024, Applied Materials has seen a steady increase in SG&A expenses, peaking at approximately 1.8 billion in 2024, reflecting a growth of nearly 100% from 2014. In contrast, KLA Corporation's SG&A expenses have grown at a slower pace, reaching around 970 million in 2024, marking a 150% increase from 2014. This divergence highlights Applied Materials' aggressive expansion strategy, while KLA Corporation focuses on cost efficiency. As the industry evolves, these strategies will play a pivotal role in shaping their competitive edge.

Key Insight:

Understanding SG&A trends can reveal strategic priorities and operational efficiencies in the semiconductor industry.