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<SEC-DOCUMENT>/in/edgar/work/20000627/0000006951-00-000008/0000006951-00-000008.txt : 20000920
<SEC-HEADER>0000006951-00-000008.hdr.sgml : 20000920
ACCESSION NUMBER:		0000006951-00-000008
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	19991231
FILED AS OF DATE:		20000627

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPLIED MATERIALS INC /DE
		CENTRAL INDEX KEY:			0000006951
		STANDARD INDUSTRIAL CLASSIFICATION:	 [3559
]		IRS NUMBER:				941655526
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1026
</COMPANY-DATA>

		FILING VALUES:
			FORM TYPE:		11-K
			SEC ACT:		
			SEC FILE NUMBER:	002-45028
			FILM NUMBER:		661439
</FILING-VALUES>

			BUSINESS ADDRESS:	
				STREET 1:		3050 BOWERS AVE
				CITY:			SANTA CLARA
				STATE:			CA
				ZIP:			95054
				BUSINESS PHONE:		4085632682
</BUSINESS-ADDRESS>

				MAIL ADDRESS:	
					STREET 1:		3050 BOWERS AVE
					CITY:			SANTA CLARA
					STATE:			CA
					ZIP:			95054
</MAIL-ADDRESS>

					FORMER COMPANY:	
						FORMER CONFORMED NAME:	APPLIED MATERIALS TECHNOLOGY INC
						DATE OF NAME CHANGE:	19730319
</FORMER-COMPANY>
</FILER>
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>0001.htm
<DESCRIPTION>FORM 11-K FOR PERIOD ENDED DECEMBER 31, 1999
<TEXT>

<HTML>
<head>
<TITLE>11K doc</TITLE>
</head>

<body bgcolor=white>

<DIV align=left>
<HR align=left SIZE=2 width="100%">
</DIV>
<DIV align=left>
<HR align=left SIZE=2 width="100%">
</DIV>

<p align="center"><font size="4"><strong>UNITED STATES</br>
SECURITIES AND EXCHANGE COMMISSION</br>
Washington, D.C. 20549</strong></font></p>


<HR align=center SIZE=2 width="25%">

<p align="center"><font size="5"><strong>FORM 11-K</strong></center></font></p>

<HR align=center SIZE=2 width="25%">

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>(MARK ONE)</i>

<p align="center"><font size="4"><strong>
   [X]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
             SECURITIES EXCHANGE ACT OF 1934 <br> (FEE REQUIRED)
</strong></font></p>

<p align="center"><font size="3" color="FF0000"><strong>
             For the fiscal year ended <u><strong>December 31, 1999</strong></u> or
</strong></font></p>
 <br>

<p align="center"><font size="4"><strong>
[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  TRANSITION REPORT PURSUANT TO SECTION 15(d) <br>
           OF THE SECURITIES EXCHANGE ACT OF 1934 <br>
          (NO FEE REQUIRED)
</strong></font></p>

<p align="center"><font size="3"><strong>
 For the transition period from ________to _________
</strong></font></p>
<p align="center"><font size="3"><strong>
             Commission file number&nbsp;&nbsp;&nbsp; <u>2-69114</u>
</strong></font></p>

<br>
<br>
<br>
<p> <font size="3">
A.  Full title of the plan and the address of the plan, if different from that of the
issuer named below:
</font>

<br>
<br>
<p align="center"><font size="5"><strong><u>
Applied Materials, Inc. Employee Savings and Retirement Plan
</p></font></strong></u>




<br>
<br>
<br>
<p> <font size="3">
B.  Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
</font>


<br>
<br>
<p align="center"><font size="4" color="#0000FF"><strong>
                             APPLIED MATERIALS, INC.<br>
                              3050 Bowers Avenue<br>
                   Santa Clara, California &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95054
</p></font></strong>


<pre>



</pre>







<p align="center"><strong>
                                   SIGNATURE
</strong></p>
<br>
<br>
<p>     Pursuant to the requirement of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.

<P>
<TABLE border=0 cellPadding=0 cellSpacing=0 width="100%">
  <TR>
    <TD width="38%"></TD>
    <TD width="62%"></TD></TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left>
                        APPLIED MATERIALS, INC.<br>
                        EMPLOYEE SAVINGS AND RETIREMENT PLAN
</TD></TR></TABLE>



<p>June 26, 2000


<P>
<TABLE border=0 cellPadding=0 cellSpacing=0 width="100%">
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="60%"></TD></TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align=left>
/s/ Seitaro Ishii
</TD></TR></TABLE>


<TABLE border=0 cellPadding=0 cellSpacing=0 width="100%">
  <TR>
    <TD width="38%"></TD>
    <TD width="62%"></TD></TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left>
      <HR align=left SIZE=1>
    </TD></TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left>
Seitaro Ishii
</TD></TR>
  <TR vAlign=top>
    <TD>&nbsp;</TD>
    <TD align=left><I>
        Group Vice President, Global Human Resources
  </I></TD></TR></TABLE></P>










<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
</strong></p>
<p align="center"><strong>

                            APPLIED MATERIALS, INC.<br>
                        EMPLOYEE SAVINGS AND RETIREMENT PLAN
</p></strong>

<p align="center"><u>
                                Table of Contents
</u></p>


<p><A HREF="#opinion">
          Independent Accountants' Report</A>

<p>Financial Statements:

<BLOCKQUOTE>

<p><A HREF="#net assets">
            Statements of Net Assets Available for Benefits -
            December 31, 1998 and 1999</A>

<p><A HREF="#changes">
          Statement of Changes in Net Assets Available for Benefits -
          year ended December 31, 1999</A>


<p><A HREF="#notes">
         Notes to Financial Statements</A>

</BLOCKQUOTE>


<p><A HREF="#consent">
         Consent of Independent Accountants (Exhibit 23.1)</A>


<pre>







</pre>
<A NAME="opinion"></A>
<p align="center"><u>

INDEPENDENT ACCOUNTANTS' REPORT
</u></p>

<p>To the Participants and Administrative Committee of the
Applied Materials, Inc. Employee Savings and Retirement Plan:

<p>We have audited the financial statements of the Applied Materials,
Inc. Employee Savings and Retirement Plan (the Plan) as of December 31,
1998 and 1999, and for the year ended December 31, 1999, as listed in
the accompanying table of contents.  These financial statements are the
responsibility of the Plan's management.  Our responsibility is to
express an opinion on these financial statements based on our audits.

<p>We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for
our opinion.

<p>In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for benefits
of the Plan as of December 31, 1998 and 1999, and the changes in net
assets available for benefits for the year ended December 31, 1999, in
conformity with generally accepted accounting principles.
<br>
<br>
<br>
<br>
<p><u>/s/ MOHLER, NIXON & WILLIAMS</u><br>
MOHLER, NIXON & WILLIAMS<br>
Accountancy Corporation<br>

<p>Campbell, California<br>
May 5, 2000






<br>
<br>
<HR WIDTH="85%">
<br>
<br>

<A NAME="net assets"></A>
<p align="center"><strong>
                             APPLIED MATERIALS, INC.<br>
                     EMPLOYEE SAVINGS AND RETIREMENT PLAN<br>
                STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS<br>
</strong>
<pre>
                                               December 31,       December 31,
                                                   1998             1999
- -------------------------------------------- ---------------  ----------------

Investments, at fair value .................   $726,390,954    $1,702,202,429
                                             ---------------  ----------------
  Assets held for investment purposes ......    726,390,954     1,702,202,429

Forfeitures payable ........................       (218,380)         (110,742)
                                             ---------------  ----------------
  Net assets available for benefits.........   $726,172,574    $1,702,091,687
                                             ===============  ================

</pre>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 See independent accountants' report and accompanying notes to
financial statements.


























<br>
<br>
<HR WIDTH="85%">
<br>
<br>

<A NAME="changes"></A>
<p align="center"><strong>
                             APPLIED MATERIALS, INC.<br>
                     EMPLOYEE SAVINGS AND RETIREMENT PLAN<br>
                STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS<br>
</strong>
<pre>
                                                 For the year ended
                                                 December 31, 1999
- ---------------------------------------------   ------------------

Additions to net assets attributed to:

  Investment income:
    Dividends and interest......................      $21,665,002
    Net realized and unrealized appreciation
      in fair value of investments..............      951,243,819
                                                ------------------
                                                      972,908,821
  Contributions:
    Participant.................................       49,172,401
    Employer....................................       15,620,802
    Transfers in from Consilium, Inc.
      Savings and Retirement Plan...............        7,129,202
                                                ------------------
                                                       71,922,405
                                                ------------------

      Total additions...........................    1,044,831,226
                                                ------------------

Deductions from net assets attributed to:

    Withdrawals and distributions...............       64,826,816
    Transfers out to other qualified plans......        4,085,297
                                                ------------------
      Total deductions..........................       68,912,113

    Net increase................................      975,919,113

    Net assets available for benefits:
      Beginning of year.........................      726,172,574
                                                ------------------
      End of year...............................   $1,702,091,687
                                                ==================
</pre>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 See independent accountants' report and accompanying notes to
financial statements.






<br>
<br>
<br>
<br>
<br>
<br>

<A NAME="notes"></A>
<p align="center"><strong>
        APPLIED MATERIALS, INC.<br>
EMPLOYEE SAVINGS AND RETIREMENT PLAN<br>
NOTES TO FINANCIAL STATEMENTS<br>
</strong>

<p align="center"><u>
December 31, 1998 and 1999
</u>
<br>
<br>
<br>
<p><strong><p>Note 1 - Significant accounting policies</strong><br>


<p>The following description of the Applied Materials, Inc. (Applied)
Employee Savings and Retirement Plan (the Plan) provides only very
general information. Participants seeking detailed information about the
Plan should refer to the Plan document and the Summary Plan
Description/Prospectus for the Plan.

<p>The Plan is a defined contribution plan that Applied established
in 1981 to provide benefits to eligible employees.  The Plan covers all
eligible U.S. or expatriate employees of Applied. Eligible employees of
Applied may enroll in the Plan after receipt of their first paycheck.

<p>The Plan is intended to comply with the applicable requirements of
the Internal Revenue Code (the Code) and the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).

<p><strong><p>Administration </strong><br>


<p>Applied is the designated administrator of the Plan for purposes
of ERISA. Applied's Board of Directors has appointed an Administrative
Committee (the 401(k) Committee) to manage the day-to-day operation and
administration of the Plan.  Applied has contracted with Fidelity
Institutional Retirement Services Company (Fidelity) to maintain the
Plan's individual participant accounts, and with Fidelity Management
Trust Company (Fidelity Trust) to act as the custodian and trustee.
Applied currently pays administrative expenses on behalf of the Plan,
except for loan fees paid by Plan participants who elect to receive a
Plan loan.  Brokerage commissions and other charges incurred in
connection with investment transactions are paid from Plan assets.

<p><strong><p>Basis of accounting </strong><br>


<p>The financial statements of the Plan are prepared using the accrual
method of accounting.  Participant and Applied matching contributions
are recorded in the period during which Applied withholds payroll
deductions from participant's earnings.  Benefits are recorded when
paid.


<p><strong><p>Investments </strong><br>


<p>Investments of the Plan are held by Fidelity Trust and are
invested in the investment options available in the Plan based solely
upon instructions received from Plan participants or as provided in the
Plan document.  The Plan's investments are valued at fair value, as
measured by quoted market prices, as of the last day of the Plan year.
Purchases and sales of securities are recorded on a trade-date basis and
dividends are recorded on the ex-dividend date.  Participant loans are
valued at cost, which approximates fair value.

<p>During 1999, the PBHG Emerging Growth Fund was replaced with the
Dreyfus Small Cap Stock Index Fund, and a new fund, the Vanguard Mid-Cap
Index Fund, was added.

<p><strong><p>Income taxes </strong><br>


<p>The Plan is intended to qualify for favorable federal and state
income tax treatment accorded to plans that qualify under Section 401(a)
of the Code, and therefore to be exempt from federal income and state
franchise taxes.  The Plan has been amended subsequent to receipt of its
most recent Internal Revenue Service favorable determination letter
dated May 22, 1996.  Prior to the end of the applicable remedial
amendment period, Applied intends to submit the Plan, as amended, for a
new favorable determination letter, which is expected to be received in
due course.

<p><strong><p>Estimates </strong><br>


<p>The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, and changes therein, and the disclosure of contingent assets
and liabilities.  Actual results could differ from those estimates.

<p><strong><p>Risks and uncertainties </strong><br>


<p>The Plan provides participants with various investment options in
any combination of stocks, bonds, fixed income securities, mutual funds
and other investment securities. Investment securities are exposed to
various risks, such as those associated with interest rates, market
conditions and credit worthiness of the securities' issuers.  Due to the
level of risk associated with certain investment securities, it is at
least reasonably possible that changes in risks in the near term could
materially affect participants' account balances and the amounts
reported in the financial statements.

<p><strong><p>New accounting pronouncement</strong><br>


<p>In September 1999, the American Institute of Certified Public
Accountants issued Statement of Position 99-3 (SOP 99-3), "Accounting
for and Reporting of Certain Defined Contribution Benefit Plan
Investments and Other Disclosure Matters."  This SOP eliminates the
previous requirement for a defined contribution plan to disclose
participant-directed investment programs by fund.  SOP 99-3 is effective
for financial statements for plan years ended after December 15, 1999.
The Plan has adopted SOP 99-3 in its financial statements for the year
ended December 31, 1999.


<p><strong><p>Note 2 - Acquisitions and transfers</strong><br>


<p>In December 1998, Applied acquired Consilium, Inc. (Consilium),
and eligible employees of Consilium started to contribute to the Plan in
March 1999.  Consilium sponsored a defined contribution plan, which was
merged with the Plan during 1999.  As a result, plan assets of
$7,129,202 were transferred into the Plan during 1999.

<p>In October 1999, Applied acquired the remaining 50 percent
ownership interest in AKT, Inc. (AKT).  Prior to the acquisition, AKT
was a 50 percent-owned joint venture, and AKT's U.S. employees were
eligible to contribute to the Plan.  As a result of the acquisition, the
Plan became a single employer plan.

<p>In October 1999, Applied acquired Obsidian, Inc. (Obsidian), and
the employees of Obsidian became eligible to contribute to the Plan.

<p>During 1999, Applied transferred certain employees to a third-
party company.  As a result, the account balances of the affected
participants were transferred to the third-party company's 401(k) plan
in 1999.


<p><strong><p>Note 3 - Participation and benefits</strong><br>


<p><strong><p>Participant contributions </strong><br>


<p>Participants may elect to have Applied contribute up to 12 percent
of their eligible pre-tax compensation for 1998 and up to 15 percent of
their eligible pre-tax compensation for 1999, subject to a dollar limit
established by the Code.  For participants who elect to contribute a
portion of their compensation to the Plan, taxable compensation is
reduced by the amount contributed.  Participant salary deferral
contributions are invested in various funds in one-percent increments
according to the participant's direction.


<p>Participants are also allowed to make rollover contributions of
amounts received from other tax-qualified employer-sponsored retirement
plans or conduit IRA's.  Such contributions are deposited in the
appropriate investment funds in accordance with the participant's
direction and the Plan's provisions.

<p><strong><p>Applied matching contributions </strong><br>


<p>Participants in the Plan become eligible for Applied matching
contributions immediately upon enrolling in the Plan.  Matching
contributions are invested primarily in the Applied Materials, Inc.
Common Stock Fund, and cannot be transferred to other investment funds
until a participant has completed 10 years of service or is fully vested
and age 50.  Applied matches 100 percent of participant contributions up
to the first three percent of compensation contributed, and 50 percent
of every dollar between four percent and six percent of compensation
contributed.  Applied's contributions are made bi-weekly, and may be in
the form of cash, shares of Applied's common stock or any combination
thereof. Fidelity Trust will use cash contributions to purchase shares
of Applied's common stock on the open market (at the then prevailing
market price), directly from Applied, or from other persons in private
transactions.  During 1998 and 1999, Applied's matching contributions
have been in the form of cash contributions.  Applied can change the
matching contribution rate, subject to the limits of the Plan and the
Code. No changes in the matching contribution rate were made during 1998
or 1999.

<p><strong><p>Participant accounts </strong><br>


<p>Each participant's account is credited with the participant's
contribution and his or her portion of Applied contributions and Plan
earnings or losses.

<p><strong><p>Payment of benefits </strong><br>


<p>Upon termination, a participant or beneficiary generally will
receive a lump-sum cash distribution, but may elect to receive whole
shares of Applied's common stock for any portion of his or her vested
account balance in the Applied Materials, Inc. Common Stock Fund.  The
Plan provides for automatic lump-sum distribution, upon participant
termination of employment, of account balances that do not exceed
$5,000.

<p><strong><p>Loans to participants </strong><br>


<p>The Plan allows participants to borrow up to the lesser of $50,000
or 50 percent of their vested account balances (excluding Applied
matching contributions).  Loans are secured by the participants' vested
balances, bear interest at prime plus one percent at the time of the
borrowing and must be repaid to the Plan from bi-weekly payroll
deductions over the loan term, which will be a minimum of one year and a
maximum of five years.  Loans are payable in full upon a participant's
termination of employment from Applied, or the occurrence of certain
other events.  Specific loan terms and conditions are established by the
401(k) Committee.  Outstanding loans at December 31, 1999 carry interest
rates ranging from 7.0 percent to 10.0 percent.

<p><strong><p>Vesting </strong><br>


<p>Participants are immediately vested in their salary deferral,
rollover contributions and any related earnings.  Upon three years of
credited service, participants begin to vest 20 percent each year in
Applied's matching contributions allocated to their accounts, and are
fully vested after seven years of credited service.  Participants become
fully vested upon death, total disability, attainment of normal
retirement age or termination of the Plan.  As required by the Code,
former employees of certain acquired companies have different vesting
schedules according to their original vesting schedules and years of
service with their former employer.  If a participant leaves Applied
prior to retirement, the unvested portion of his or her matching account
will be forfeited.  Forfeitures can be used to offset Applied's matching
contribution.  Forfeitures in 1998 and 1999 were $2,294,791 and
$6,069,911, respectively.


<p><strong><p>Note 4 - Party-in-interest and related party transactions</strong><br>


<p>As allowed by the Plan, participants may elect to invest in the
Applied Materials, Inc. Common Stock Fund.  In addition, Applied
matching contributions are generally invested in the Applied Materials,
Inc. Common Stock Fund.  Aggregate investment in Applied's common stock
at December 31, 1998 and 1999 was as follows:

<pre>

          Number of shares     Fair Value         Cost
- --------  ----------------   ---------------  -------------
  1998         22,849,004 *    $487,683,429   $201,625,739
  1999         20,087,790 *  $1,272,671,701   $271,486,359

</pre>
<font size="2">
<sup><p>*</sup>&nbsp;&nbsp;
Restated to reflect a two-for-one stock split in the form o
100 percent stock dividend, effective March 15,2000.
</font size="2">

<p>The Applied Materials, Inc. Common Stock Fund invests primarily in
Applied's common stock.  The remainder of the Fund is invested in the
Fidelity Institutional Cash Portfolio Money Market to allow for timely
handling of exchanges, withdrawals and distributions.

<p>Certain Plan investments in mutual funds are managed by the Plan
trustee, Fidelity Trust.  Any purchases and sales of these funds qualify
as party-in-interest transactions.  These transactions are performed in
the open market at fair market value.  Such transactions are permitted
under the provisions of the Plan and are exempt from the prohibition of
party-in-interest transactions under ERISA and applicable exemptions
promulgated thereunder.



<p><strong><p>Note 5 - Plan termination and/or modification</strong><br>


<p>Applied currently intends to continue the Plan indefinitely for
the benefit of its participants and their beneficiaries; however, it
reserves the right to terminate and/or modify the Plan at any time by
resolution of its Board of Directors and subject to the provisions of
ERISA.  In the event the Plan is terminated, participants would become
fully vested in their accounts.


<p><strong><p>Note 6 - Subsequent events</strong><br>


<p>In March 2000, Applied acquired Etec Systems, Inc. (Etec), and the
employees of Etec became eligible to contribute to the Plan in April
2000.


<p><strong><p>Note 7 - Investments</strong><br>


<p>The following table includes the fair values of investments and
investment funds that represent five percent or more of the Plan's net
assets at December 31:

<pre>
                                                    1998              1999
- -------------------------------------------  ------------------  ---------------
Fidelity:
  Retirement Government Money
    Market Portfolio.........................      $46,624,507     $116,291,423
  Equity Income Fund ........................       39,049,335       40,890,928
  Intermediate Bond Fund ....................       12,759,277       18,123,149
  Magellan Fund .............................       69,514,098      102,140,717
  Contrafund ................................       10,589,602       21,085,628
  Spartan U.S. Equity Index Fund ............       14,803,261       25,767,104
Applied Materials, Inc. Common Stock Fund* ..      494,290,297    1,296,766,990
PBHG Emerging Growth Fund ...................        5,801,006           --
Janus Worldwide Fund ........................       17,803,959       54,932,080
INVESCO Total Return Fund ...................        3,502,342        4,715,907
Vanguard Mid-Cap Index Fund..................        --               1,425,965
Dreyfus Small Cap Stock Index Fund...........        --               7,188,287
Participant Loans ...........................       11,653,270       12,874,251
                                             ------------------  ---------------
    Assets held for investment purposes......     $726,390,954   $1,702,202,429
                                             ==================  ===============
</pre>
<font size="2">
<sup><p>*</sup>&nbsp;&nbsp;
Includes employer matching contributions, which are nonparticipant-directed.
See Note 8 for further details.
</font size="2">

<p>The Applied Materials, Inc. Common Stock Fund includes investments
in the Fidelity Institutional Cash Portfolio Money Market of $6,606,868
at December 31, 1998 and $24,095,289 at December 31, 1999.  The balance
of the fund is invested in Applied's common stock.

<p>The Plan's investments (including gains and losses on investments
bought and sold, as well as held during the year) appreciated in value
as follows:

<pre>
                                             For the year ended
                                              December 31, 1999
- -------------------------------------------  ------------------
Mutual funds..............................         $26,197,694
Common stock..............................         925,046,125
                                             ------------------
                                                  $951,243,819
                                             ==================
</pre>


<p><strong><p>Note 8 - Nonparticipant-directed investments</strong><br>


<p>As discussed in Note 3, Applied matching contributions are
invested in the Applied Materials, Inc. Common Stock Fund and cannot be
transferred to other investment funds until a participant meets certain
criteria.  As a result, the portion of the Applied Materials, Inc.
Common Stock Fund that relates to employer contributions is a
nonparticipant-directed investment.  The net assets and significant
components of the changes in net assets relating to nonparticipant-directed
investments are as follows:

<pre>
                                             December 31, 1999
- -------------------------------------------  ------------------
Net Assets:
  Common Stock ..............................     $694,447,764
                                             ==================


Changes in Net Assets:
  Employer contributions.....................      $15,326,503
  Net realized and unrealized appreciation
     in fair value of investments............      138,696,766
  Withdrawals and distributions..............      (17,183,694)
  Transfers to participant-directed
     investments.............................      (51,111,806)
                                             ------------------
     Net increase............................       85,727,769

     Net assets - beginning of year..........      608,719,995
                                             ------------------
     Net assets - end of year................     $694,447,764
                                             ==================
</pre>



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<SEQUENCE>2
<FILENAME>0002.htm
<DESCRIPTION>CONSENT OF INDEPENDENT ACCOUNTANTS
<TEXT>

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<A NAME="consent"></A>

<p align="right"><u>EXHIBIT 23.1</u></p>
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CONSENT OF INDEPENDENT ACCOUNTANTS
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<p>We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (No. 33-52072 and No. 333-31289) of Applied
Materials, Inc. of our report dated May 5, 2000, with respect to the
financial statements of the Applied Materials, Inc. Employee Savings and
Retirement Plan included in this Annual Report on Form 11-K.
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<p><u> /s/ MOHLER, NIXON & WILLIAMS</u><br>
        MOHLER, NIXON & WILLIAMS<br>
        Accountancy Corporation

<p>Campbell, California<br>
June 26, 2000

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