Applied Materials CEO: 'Bendable, foldable, flexible' displays in the future

Applied Materials President and CEO Gary Dickerson predicted on Thursday consumers will see a large adoption of organic LED displays for mobile devices and more drastic changes to the screen in the near future.

The manufacturing company Wednesday at an annual analyst day meeting outlined its innovation strategy to drive growth, which includes venturing into new technologies such as materials scaling and virtual reality hardware.

It expects a compound earnings growth of about 17 percent over the next three years, the company said in a note to investors.

"We're seeing the biggest changes that we've seen in decades in [the] memory technology and semiconductor industry being enabled by materials innovation. ... We're also seeing a big change in display technology going to organic LED for mobile devices," he said on CNBC's "Squawk Alley."

He added, "I think in the future you're gonna see bendable, foldable, flexible displays."

He also said current versions for augmented reality and VR aren't "super exciting" at the moment, but innovations in smart devices will drive improvements.

Applied Materials' stock was trading lower intraday Thursday at $30.22 a share. The stock is up more than 62 percent this year.