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AMAT vs AVGO
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Broadcom (AVGO) Stock Comparison
Key Takeaways
- Applied Materials and Broadcom are both semiconductor industry leaders, but they operate with fundamentally different business models — one focused on manufacturing equipment, the other on chip design and infrastructure software.
- In recent weeks, AVGO has demonstrated stronger upward momentum, driven by AI-related demand and a series of positive analyst revisions following its VMware integration progress.
- AMAT remains a critical enabler of the global chip supply chain, though its performance has been more range-bound recently amid concerns about export restrictions and equipment demand cycles.
- Both stocks benefit from the secular tailwind of artificial intelligence, but they capture value at different stages of the semiconductor ecosystem.
- Tickeron's AI-driven analysis provides a data-backed perspective on which stock currently exhibits more favorable trend characteristics.
Introduction
The semiconductor industry continues to command investor attention as artificial intelligence reshapes the technology landscape. Within this sector, AMAT and AVGO represent two distinct plays on the same megatrend — one supplies the essential manufacturing equipment that builds chips, while the other designs and sells the chips themselves alongside enterprise software solutions. This comparison is particularly relevant for traders and investors seeking to understand how different positions within the semiconductor value chain perform under current market conditions. By examining their recent performance, business fundamentals, and AI-driven signals, readers can better assess the relative positioning of these two influential names.
AMAT Overview and Recent Performance
Applied Materials, trading under the ticker AMAT, is the world's largest supplier of semiconductor fabrication equipment, providing the machinery and services that chipmakers rely on to manufacture advanced semiconductors. The company's equipment is essential for processes such as deposition, etching, and inspection — critical steps in producing leading-edge logic and memory chips.
In recent weeks, AMAT shares have traded in a relatively consolidation-heavy pattern, reflecting a tug-of-war between strong long-term secular demand and near-term headwinds. The company continues to benefit from the global push to build new fabrication facilities, particularly in the United States, where government incentives under the CHIPS Act have spurred capital investment. However, sentiment has been tempered by ongoing uncertainty around export controls to China, which represents a meaningful portion of Applied Materials' revenue. Market participants have also been assessing the pace of spending normalization following several quarters of elevated equipment orders. Despite these crosscurrents, AMAT maintains a robust balance sheet and has demonstrated consistent profitability, characteristics that continue to attract institutional interest.
AVGO Overview and Recent Performance
Broadcom, trading under the ticker AVGO, is a diversified semiconductor and infrastructure software company. Its product portfolio spans networking chips, broadband components, wireless connectivity solutions, and a growing enterprise software business significantly expanded through the acquisition of VMware. Broadcom's chips are found in data centers, smartphones, telecom infrastructure, and industrial applications.
Over recent market activity, AVGO has exhibited notable relative strength compared to the broader semiconductor sector. The stock has been buoyed by sustained enthusiasm around AI-driven data center spending, where Broadcom's custom ASIC (Application-Specific Integrated Circuit) chips and networking solutions play a pivotal role. Additionally, the integration of VMware has progressed ahead of initial timelines, with management reporting stronger-than-expected subscription revenue conversion. Wall Street analysts have responded favorably, with several firms raising their price targets in recent weeks. Broadcom's diversified revenue streams — spanning both cyclical semiconductor markets and recurring software income — have been cited as a stabilizing factor during periods of hardware demand uncertainty.
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Head-to-Head Comparison
When comparing AMAT and AVGO directly, several key contrasts emerge. From a business model perspective, AMAT is a picks-and-shovels play on semiconductor manufacturing — it succeeds when chipmakers expand capacity, regardless of which specific chips are in demand. AVGO, by contrast, is more directly exposed to end-market demand for specific semiconductor categories, particularly in networking and AI compute.
The growth driver profiles also differ meaningfully. AMAT's revenue is closely tied to capital expenditure (CapEx) cycles at major foundries like TSMC, Samsung, and Intel. When these manufacturers pull forward or delay equipment orders, AMAT feels the impact. AVGO benefits from both unit volume growth in chips and the sticky, high-margin revenue from its software segment. This software component — now significantly larger after the VMware acquisition — provides a recurring revenue stream that AMAT lacks.
On the risk front, AMAT faces particular sensitivity to geopolitical tensions involving China, where export restrictions on advanced semiconductor equipment could constrain addressable markets. AVGO, while not immune to China risk, derives a smaller percentage of direct revenue from the region in its current structure. Conversely, AVGO's aggressive acquisition strategy introduces integration risk, though the company has historically executed well on this front.
Market sentiment currently appears to favor AVGO, as reflected in its stronger relative momentum and more consistent series of positive analyst actions. AMAT, while fundamentally sound, is contending with a more uncertain near-term demand picture as the industry digests recent capacity investments.
Tickeron AI Verdict
Based on observable trend strength, momentum consistency, and catalyst positioning, Tickeron's AI-driven analysis currently indicates a more favorable technical and fundamental alignment for AVGO compared to AMAT. The AI assessment weighs Broadcom's diversified revenue base, the successful VMware integration trajectory, and stronger recent price momentum as contributing factors. Applied Materials remains a high-quality enterprise with compelling long-term drivers, but current signals suggest it may require additional clarity on export policy and equipment demand before its trend profile strengthens further. As always, this probabilistic assessment reflects present conditions and should be monitored as market dynamics evolve.
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 Hold and AVGO is a Buy.
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 undervalued. 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 whileAVGO’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 5 TA indicator(s) are bullish while AVGO’s TA Score has 6 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 5 bearish.
- AVGO’s TA Score: 6 bullish, 4 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +5.12% price change this week, while AVGO (@Semiconductors) price change was +8.44% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +8.88%. For the same industry, the average monthly price growth was +0.07%, and the average quarterly price growth was +52.55%.
The average weekly price growth across all stocks in the @Semiconductors industry was +11.24%. For the same industry, the average monthly price growth was -2.06%, and the average quarterly price growth was +48.34%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
AVGO is expected to report earnings on Sep 03, 2026.
Industries' Descriptions
@Electronic Production Equipment (+8.88% 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 (+11.24% 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.
| AMAT | AVGO | AMAT / AVGO | |
| Capitalization | 428B | 2.04T | 21% |
| EBITDA | 11.1B | 42.4B | 26% |
| Gain YTD | 105.765 | 21.963 | 482% |
| P/E Ratio | 50.72 | 71.17 | 71% |
| Revenue | 29B | 75.5B | 38% |
| Total Cash | 8.24B | 19.6B | 42% |
| Total Debt | 7.27B | 64.9B | 11% |
AMAT | AVGO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 72 | 36 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 70 Overvalued | 77 Overvalued | |
PROFIT vs RISK RATING 1..100 | 36 | 7 | |
SMR RATING 1..100 | 25 | 26 | |
PRICE GROWTH RATING 1..100 | 36 | 42 | |
P/E GROWTH RATING 1..100 | 8 | 87 | |
SEASONALITY SCORE 1..100 | 90 | 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 (70) in the Electronic Production Equipment industry is in the same range as AVGO (77) 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 (7) in the Semiconductors industry is in the same range as AMAT (36) in the Electronic Production Equipment industry. This means that AVGO’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's SMR Rating (25) in the Electronic Production Equipment industry is in the same range as AVGO (26) in the Semiconductors industry. This means that AMAT’s stock grew similarly to AVGO’s over the last 12 months.
AMAT's Price Growth Rating (36) in the Electronic Production Equipment industry is in the same range as AVGO (42) 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 (8) in the Electronic Production Equipment industry is significantly better than the same rating for AVGO (87) 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 (%) | 2 days ago 89% | 2 days ago 58% |
| Stochastic ODDS (%) | 2 days ago 70% | 2 days ago 58% |
| Momentum ODDS (%) | 2 days ago 77% | 2 days ago 84% |
| MACD ODDS (%) | 2 days ago 76% | 2 days ago 85% |
| TrendWeek ODDS (%) | 2 days ago 77% | 2 days ago 79% |
| TrendMonth ODDS (%) | 2 days ago 66% | 2 days ago 81% |
| Advances ODDS (%) | 5 days ago 79% | 2 days ago 81% |
| Declines ODDS (%) | 3 days ago 64% | 11 days ago 58% |
| BollingerBands ODDS (%) | 2 days ago 86% | 2 days ago 58% |
| Aroon ODDS (%) | 2 days ago 71% | 2 days ago 79% |
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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 89% 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% | -1.27% | ||
| LRCX - AMAT | 89% Closely correlated | -0.54% | ||
| KLAC - AMAT | 87% Closely correlated | +0.22% | ||
| ONTO - AMAT | 81% Closely correlated | -2.64% | ||
| NVMI - AMAT | 81% Closely correlated | -5.23% | ||
| ASML - AMAT | 80% Closely correlated | +1.56% | ||
More | ||||
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% | +0.55% | ||
| LRCX - AVGO | 69% Closely correlated | -0.54% | ||
| KLAC - AVGO | 68% Closely correlated | +0.22% | ||
| AMAT - AVGO | 65% Loosely correlated | -1.27% | ||
| AMKR - AVGO | 65% Loosely correlated | +0.56% | ||
| VECO - AVGO | 64% Loosely correlated | -2.55% | ||
More | ||||