Advertisement
AMAT vs AVGO
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Broadcom (AVGO) Stock Comparison
Key Takeaways
- Different AI exposure: AMAT sells the equipment used to make chips, while AVGO designs custom AI chips and networking silicon directly.
- Momentum diverges: AMAT has posted sharp gains in recent weeks, while AVGO has traded sideways and sits below its 52-week high despite explosive revenue growth.
- Growth profile: AVGO's AI revenue is growing at a triple-digit pace, whereas AMAT's growth is steadier and tied to capital spending on new fabrication plants.
- Risk balance: AVGO carries higher customer concentration and financing-related exposure; AMAT is more sensitive to cyclical equipment demand and valuation.
- Verdict lean: Observable trend consistency and momentum currently favor AMAT, while AVGO offers a deeper-value, higher-growth profile.
Introduction
Semiconductors power the artificial intelligence build-out, but not every chip-related stock plays the same role. This stock comparison examines AMAT (Applied Materials), a leading supplier of wafer fabrication equipment, and AVGO (Broadcom), a designer of custom AI accelerators and networking silicon. Although both companies benefit from the same secular demand trend, their business models, risk profiles, and recent market positioning differ meaningfully. Traders evaluating relative performance and long-term investors weighing different ways to gain AI exposure may find this comparison useful, particularly given the recent divergence in how the two stocks have behaved.
AMAT Overview and Recent Performance
Applied Materials manufactures the precision machinery and materials-engineering systems used to build advanced semiconductors. Its equipment addresses leading-edge foundry logic, DRAM (dynamic random-access memory), and advanced packaging, areas that management expects to drive the bulk of wafer fab equipment (WFE) spending growth in the coming years.
Recent market activity has been strong. AMAT shares have surged over recent weeks and months, more than doubling over the course of the year in a rally driven by AI-fueled demand for chipmaking tools. The company recently reported record revenue, with growth supported by demand for high-bandwidth memory (HBM) packaging and its Applied Global Services segment, which reached record levels. Management also raised its quarterly dividend, marking nine consecutive years of increases.
Sentiment has been buoyed by broad exposure to AI infrastructure investment, but the stock's premium valuation has also drawn scrutiny, as investors weigh whether elevated expectations leave limited room for disappointment.
AVGO Overview and Recent Performance
Broadcom designs custom AI accelerators (sometimes called XPUs), networking chips, and infrastructure software, including the VMware platform. Unlike off-the-shelf chipmakers, Broadcom builds processors to each large customer's specifications and supplies the networking gear that links thousands of chips inside data centers.
AVGO's fundamentals have been exceptional. Recent quarterly revenue rose sharply year over year, and AI semiconductor revenue grew by triple digits, driven by ramps from major cloud customers. Management has guided for further sequential acceleration and outlined aggressive multi-year AI revenue targets. Free cash flow reached a record, and software revenue grew robustly.
Despite this, AVGO's stock has lagged the broader market in recent weeks, trading below its 52-week high. Concerns around customer concentration, financing arrangements tied to large AI customers, and margin pressure from a rising AI mix have tempered sentiment, leaving the shares at a notable discount to consensus price targets.
Trending AI Robots
Tickeron operates a large ecosystem of AI-powered trading bots, with hundreds of automated strategies spanning thousands of tickers. Because each bot differs in trading style, strategy, timeframe, performance statistics, and the set of securities it follows, not every bot suits every market condition. The curated Trending AI Robots page highlights only those bots currently considered the most suitable for prevailing market conditions, helping users identify strategies aligned with today's momentum, volatility, and sector rotation. Visitors can explore bots across diversified trading approaches and review their performance metrics to find a style that matches their objectives. To see which strategies are currently leading the rankings, browse the Trending AI Robots section.
Head-to-Head Comparison
The two companies occupy different positions in the semiconductor value chain. AMAT is a capital-equipment provider whose revenue depends on chipmakers' spending on new fabrication capacity, making it a leveraged play on industry capital expenditure cycles. AVGO is a chip designer and software vendor whose revenue is tied more directly to shipments of custom accelerators and networking products to a concentrated group of hyperscale customers.
Growth drivers also contrast. AMAT benefits from the breadth of the AI build-out—every new fab requires its tools—while AVGO benefits from the depth of a few massive customer relationships and from AI inference workloads that favor cost-efficient custom chips.
On risk factors, AMAT faces cyclicality and a rich valuation, while AVGO faces customer concentration, financing-related exposure, and declining gross margins as lower-margin AI products become a larger share of revenue. In terms of market sentiment, AMAT currently shows stronger relative momentum, whereas AVGO trades at a valuation that reflects caution despite superior headline growth.
Tickeron AI Verdict
Based on observable trend consistency, relative positioning, and near-term catalysts, Tickeron's AI would currently lean toward AMAT. The stock's persistent upward trend, improving margins, and broad, diversified demand across leading-edge logic, DRAM, and advanced packaging give it more stable momentum characteristics. AVGO offers stronger absolute growth and a more attractive valuation, but its sideways price action, customer concentration, and margin pressure introduce greater near-term uncertainty. This probabilistic read reflects current market conditions and could shift as new earnings data and catalysts emerge.
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 Hold.
Momentum Indicator for AMAT turns negative, indicating new downward trend
AMAT saw its Momentum Indicator move below the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned negative. In 62 of the 87 cases, the stock moved further down in the following days. The odds of a decline are at 71%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for AMAT turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 31 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
AMAT moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
The Aroon Indicator for AMAT entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for AMAT crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Following a +2.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 251 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 17 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 25 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.675) is normal, around the industry mean (6.849). P/E Ratio (35.042) is within average values for comparable stocks, (85.952). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.005) settles around the average of (0.008) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Momentum Indicator for AVGO turns negative, indicating new downward trend
AVGO saw its Momentum Indicator move below the 0 level on October 16, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned negative. In 60 of the 88 cases, the stock moved further down in the following days. The odds of a decline are at 68%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for AVGO turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In 34 of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
AVGO moved below its 50-day moving average on October 08, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVGO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AVGO's RSI Indicator exited the oversold zone, 10 of 12 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.86% 3-day Advance, the price is estimated to grow further. Considering data from situations where AVGO advanced for three days, in 271 of 343 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
AVGO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 224 of 296 cases where AVGO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 76%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 20 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 23 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. AVGO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: AVGO's P/B Ratio (15.742) is slightly higher than the industry average of (6.294). P/E Ratio (40.737) is within average values for comparable stocks, (22.044). Projected Growth (PEG Ratio) (0.346) is also within normal values, averaging (3.761). Dividend Yield (0.008) settles around the average of (0.011) among similar stocks. P/S Ratio (18.622) is also within normal values, averaging (45.794).
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
AMAT | AVGO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 50 | 20 | |
SMR RATING 1..100 | 25 | 23 | |
PRICE GROWTH RATING 1..100 | 45 | 61 | |
P/E GROWTH RATING 1..100 | 17 | 92 | |
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 (76) in the Electronic Production Equipment industry is in the same range as AVGO (78) 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 (20) in the Semiconductors industry is in the same range as AMAT (50) 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 (45) in the Electronic Production Equipment industry is in the same range as AVGO (61) 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 (17) in the Electronic Production Equipment industry is significantly better than the same rating for AVGO (92) 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 79% | 4 days ago 83% |
| Stochastic ODDS (%) | 4 days ago 75% | 4 days ago 90% |
| Momentum ODDS (%) | 4 days ago 71% | 4 days ago 68% |
| MACD ODDS (%) | 4 days ago 69% | 4 days ago 61% |
| TrendWeek ODDS (%) | 4 days ago 67% | 4 days ago 62% |
| TrendMonth ODDS (%) | 4 days ago 70% | 4 days ago 69% |
| Advances ODDS (%) | 15 days ago 79% | 13 days ago 79% |
| Declines ODDS (%) | 4 days ago 66% | 4 days ago 62% |
| BollingerBands ODDS (%) | 4 days ago 86% | 4 days ago 89% |
| Aroon ODDS (%) | 4 days ago 63% | 4 days ago 76% |
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 5 TA indicator(s) are bullish while AVGO’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 5 bearish.
- AVGO’s TA Score: 5 bullish, 4 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -19.28% price change this week, while AVGO (@Semiconductors) price change was -9.07% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -12.90%. For the same industry, the average monthly price growth was -12.38%, and the average quarterly price growth was -23.01%.
The average weekly price growth across all stocks in the @Semiconductors industry was -8.33%. For the same industry, the average monthly price growth was -10.12%, and the average quarterly price growth was +0.41%.
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 (-12.90% 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 (-8.33% 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.
Advertisement
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% | -4.82% | ||
| LRCX - AMAT | 91% Closely correlated | -4.87% | ||
| KLAC - AMAT | 87% Closely correlated | -5.00% | ||
| ONTO - AMAT | 84% Closely correlated | -4.85% | ||
| ASML - AMAT | 82% Closely correlated | -0.96% | ||
| NVMI - AMAT | 81% Closely correlated | -2.50% | ||
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% | -4.52% | ||
| LRCX - AVGO | 69% Closely correlated | -4.87% | ||
| KLAC - AVGO | 68% Closely correlated | -5.00% | ||
| AMAT - AVGO | 65% Loosely correlated | -4.82% | ||
| AMKR - AVGO | 65% Loosely correlated | -5.06% | ||
| VECO - AVGO | 64% Loosely correlated | -5.34% | ||
More | ||||