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AMAT vs AVGO
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Broadcom (AVGO) Stock Comparison
Key Takeaways
- Applied Materials reported record fiscal Q3 2026 revenue of $9.12 billion and non-GAAP earnings per share (EPS) of $3.50, driven by AI-related demand in semiconductor equipment.
- Broadcom experienced notable stock volatility in recent weeks amid concerns over a VMware security issue and financing for large AI chip orders, despite prior strong AI revenue growth.
- Both companies operate in the semiconductor sector and benefit from artificial intelligence (AI) infrastructure expansion, though AMAT focuses on manufacturing equipment while AVGO spans custom chips, networking, and software.
- Recent market activity shows AMAT shares roughly doubling year-to-date despite a post-earnings pullback, while AVGO has seen sharper corrections from recent highs.
- Sector exposure and growth drivers overlap significantly in AI, creating trade-offs in stability versus scale for investors evaluating relative performance.
- Market sentiment remains positive on long-term AI tailwinds for both, with differing near-term catalysts influencing positioning.
Introduction
Applied Materials and Broadcom represent two distinct yet complementary plays within the semiconductor ecosystem, both positioned to capitalize on the ongoing buildout of artificial intelligence infrastructure. This comparison examines their business models, recent performance trends, and market positioning to assist traders and investors seeking to understand relative opportunities in a high-growth sector. The analysis draws on developments from recent weeks and broader quarterly results, providing context for those monitoring momentum, risk factors, and competitive dynamics in technology equities.
AMAT Overview and Recent Performance
Applied Materials develops equipment used in semiconductor manufacturing, serving foundry, logic, and memory markets critical to advanced chip production. In its fiscal third quarter ended July 26, 2026, the company delivered record revenue of $9.12 billion, up 25% year over year, alongside non-GAAP EPS of $3.50 that exceeded expectations. Management highlighted unprecedented AI-driven demand and issued strong fourth-quarter guidance. Shares experienced a roughly 5% decline immediately following the report amid elevated expectations and profit-taking, yet the stock has approximately doubled year-to-date amid sustained investor interest in its role supporting AI supply chains.
AVGO Overview and Recent Performance
Broadcom designs custom semiconductors, networking solutions, and provides enterprise software through its VMware subsidiary. Recent market activity included a notable pullback in mid-August 2026 following reports of active exploitation of a VMware vCenter vulnerability and discussions around financing for substantial AI chip backlogs. Earlier periods featured robust AI semiconductor revenue growth exceeding 140% year over year in the prior quarter. The stock has retreated from recent highs but maintains exposure to hyperscale AI deployments and long-term customer commitments extending into future years.
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Head-to-Head Comparison
Applied Materials centers on capital equipment for chip fabrication, offering direct exposure to manufacturing capacity expansions tied to AI. Broadcom integrates custom silicon design, networking, and software, providing diversified revenue streams but introducing variables such as security-related software risks. Recent momentum favored AMAT through strong earnings execution, while AVGO navigated greater short-term volatility from external factors. Both carry sector exposure to semiconductors and AI catalysts, yet trade-offs emerge in growth concentration versus breadth, with equipment demand potentially offering more consistent visibility compared to custom chip financing and competitive dynamics.
Tickeron AI Verdict
Based on observable factors including trend consistency following recent earnings, stability in order visibility, and positioning within AI supply chains, Tickeron’s AI models currently assign a modestly higher probabilistic preference to AMAT over AVGO. This assessment reflects stronger sequential execution and fewer near-term disruptions in available data, though both remain subject to broader market and sector influences.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AMAT is a Buy and AVGO is a StrongBuy.
AMAT | AVGO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 69 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 42 | 15 | |
SMR RATING 1..100 | 25 | 23 | |
PRICE GROWTH RATING 1..100 | 38 | 48 | |
P/E GROWTH RATING 1..100 | 9 | 90 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
AMAT's Valuation (69) in the Electronic Production Equipment industry is in the same range as AVGO (69) in the Semiconductors industry. This means that AMAT’s stock grew similarly to AVGO’s over the last 12 months.
AVGO's Profit vs Risk Rating (15) in the Semiconductors industry is in the same range as AMAT (42) in the Electronic Production Equipment industry. This means that AVGO’s stock grew similarly to AMAT’s over the last 12 months.
AVGO's SMR Rating (23) in the Semiconductors industry is in the same range as AMAT (25) in the Electronic Production Equipment industry. This means that AVGO’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's Price Growth Rating (38) in the Electronic Production Equipment industry is in the same range as AVGO (48) in the Semiconductors industry. This means that AMAT’s stock grew similarly to AVGO’s over the last 12 months.
AMAT's P/E Growth Rating (9) in the Electronic Production Equipment industry is significantly better than the same rating for AVGO (90) in the Semiconductors industry. This means that AMAT’s stock grew significantly faster than AVGO’s over the last 12 months.
| AMAT | AVGO | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 89% | 4 days ago 75% |
| Stochastic ODDS (%) | 4 days ago 66% | 4 days ago 63% |
| Momentum ODDS (%) | 4 days ago 70% | 4 days ago 66% |
| MACD ODDS (%) | 4 days ago 80% | 4 days ago 82% |
| TrendWeek ODDS (%) | 4 days ago 77% | 4 days ago 61% |
| TrendMonth ODDS (%) | 4 days ago 79% | 4 days ago 68% |
| Advances ODDS (%) | 6 days ago 79% | 7 days ago 79% |
| Declines ODDS (%) | 13 days ago 65% | 5 days ago 60% |
| BollingerBands ODDS (%) | N/A | 4 days ago 77% |
| Aroon ODDS (%) | 4 days ago 72% | 4 days ago 73% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AMAT’s FA Score shows that 2 FA rating(s) are green while AVGO’s FA Score has 2 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- AVGO’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AMAT’s TA Score shows that 4 TA indicator(s) are bullish while AVGO’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 3 bearish.
- AVGO’s TA Score: 4 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +9.09% price change this week, while AVGO (@Semiconductors) price change was -1.16% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +1.41%. For the same industry, the average monthly price growth was +5.08%, and the average quarterly price growth was +22.36%.
The average weekly price growth across all stocks in the @Semiconductors industry was +0.07%. For the same industry, the average monthly price growth was +7.66%, and the average quarterly price growth was +54.78%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
AVGO is expected to report earnings on Dec 10, 2026.
Industries' Descriptions
@Electronic Production Equipment (+1.41% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
@Semiconductors (+0.07% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
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AMAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMAT has been closely correlated with LRCX. These tickers have moved in lockstep 91% of the time. This A.I.-generated data suggests there is a high statistical probability that if AMAT jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To AMAT | 1D Price Change % | ||
|---|---|---|---|---|
| AMAT | 100% | +2.27% | ||
| LRCX - AMAT | 91% Closely correlated | +2.62% | ||
| KLAC - AMAT | 87% Closely correlated | +0.43% | ||
| ONTO - AMAT | 83% Closely correlated | +2.83% | ||
| NVMI - AMAT | 82% Closely correlated | +0.39% | ||
| ASML - AMAT | 82% Closely correlated | +1.24% | ||
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AVGO and
Correlation & Price change
A.I.dvisor indicates that over the last year, AVGO has been closely correlated with LRCX. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if AVGO jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To AVGO | 1D Price Change % | ||
|---|---|---|---|---|
| AVGO | 100% | +0.70% | ||
| LRCX - AVGO | 69% Closely correlated | +2.62% | ||
| KLAC - AVGO | 68% Closely correlated | +0.43% | ||
| AMAT - AVGO | 65% Loosely correlated | +2.27% | ||
| AMKR - AVGO | 65% Loosely correlated | +1.75% | ||
| VECO - AVGO | 64% Loosely correlated | +9.28% | ||
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