Advertisement
AMAT vs AVGO
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Broadcom (AVGO) Stock Comparison
Key Takeaways
- Both AMAT and AVGO are major beneficiaries of artificial intelligence-driven semiconductor demand, with recent quarters highlighting robust revenue growth and margin expansion.
- Applied Materials reported record fiscal Q3 2026 revenue of $9.12 billion (up 25% year over year) and non-GAAP earnings per share of $3.50 (up 41%), supported by advanced packaging and high-bandwidth memory trends.
- Broadcom has delivered exceptional AI semiconductor revenue growth, reaching $10.8 billion in fiscal Q2 (up 143% year over year), with guidance pointing to approximately $16 billion for Q3 amid custom chip and networking strength.
- Market capitalization and scale differ significantly, with Broadcom at approximately $1.75 trillion versus Applied Materials near $366 billion, reflecting broader business diversification for the former.
- Recent stock performance shows volatility for both amid sector rotation, with AMAT trading around $462 and AVGO near $369 as of late August 2026.
- Investor sentiment remains tied to AI infrastructure spending visibility, with both companies providing elevated guidance tied to long-term fab and data-center investments.
Introduction
Applied Materials (AMAT) and Broadcom (AVGO) represent two distinct yet complementary plays within the semiconductor ecosystem, both positioned to capitalize on accelerating artificial intelligence adoption. Applied Materials specializes in materials engineering equipment essential for chip fabrication, while Broadcom delivers semiconductors, custom application-specific integrated circuits (ASICs), and infrastructure software. This comparison appeals to growth-oriented investors and traders seeking exposure to AI supply-chain tailwinds, relative valuation differences, and momentum shifts in a high-growth sector. The analysis focuses on verifiable recent developments to highlight performance contrasts and market positioning without forward-looking speculation.
AMAT Overview and Recent Performance
Applied Materials, Inc. provides equipment and services for semiconductor manufacturing, with key exposure to logic, memory, and advanced packaging processes critical for AI chips. In its fiscal third quarter ended July 26, 2026, the company posted record revenue of $9.12 billion, a 25% year-over-year increase, alongside non-GAAP diluted earnings per share of $3.50, up 41%. Gross margins reached 50.4% on a non-GAAP basis, extending a streak of year-over-year expansion. Management cited strong demand visibility, including rolling eight-quarter customer forecasts and more than ten new fab projects announced during the quarter. DRAM revenue, boosted by high-bandwidth memory, grew 52% year over year to record levels. The stock has traded in a range reflecting broader sector volatility, recently near $462 after earlier gains from 52-week lows, with sentiment supported by AI-related order momentum and a new board appointment.
AVGO Overview and Recent Performance
Broadcom Inc. operates across semiconductors and infrastructure software, with significant revenue from custom ASICs, networking, and broadband solutions serving hyperscale data centers. Fiscal second-quarter results showed AI semiconductor revenue surging 143% year over year to $10.8 billion, contributing nearly half of total sales. Guidance for the third quarter pointed to approximately $16 billion in AI revenue within an overall revenue target near $29.4 billion. The company maintains multi-year supply commitments with major hyperscalers and continues to expand partnerships. Shares have experienced volatility, recently trading near $369 amid sector-wide movements and ahead of the September 2 earnings release, with a market capitalization exceeding $1.75 trillion. Sentiment reflects the scale of AI infrastructure spending alongside competitive dynamics in custom silicon.
Trending AI Robots
Trending AI Robots showcases a curated selection from Tickeron’s extensive library of hundreds of AI trading bots that execute strategies across thousands of tickers. Only those demonstrating superior performance and adaptability to prevailing market conditions earn placement in this section. Available bots exhibit diverse trading styles, timeframes, and statistics, with select trending examples reporting annualized returns in ranges such as 65% to over 100%, win rates between 59% and 67.5%, and profit factors exceeding 2.5 in live or simulated conditions. These metrics vary by individual bot and reflect different risk-reward profiles across equities, sectors, and market regimes. Traders interested in automated, data-driven approaches can explore the full suite and current trending selections on the platform.
Head-to-Head Comparison
Applied Materials operates primarily in semiconductor capital equipment, deriving growth from materials engineering solutions that enable advanced chip production, whereas Broadcom integrates semiconductor design with software and systems, offering broader exposure through custom ASICs and networking infrastructure. Recent momentum favors both on AI demand, yet AMAT highlights equipment order visibility and margin expansion in packaging, while AVGO emphasizes scale in AI semiconductor revenue and long-term hyperscaler commitments. Risk factors include supply-chain concentration for equipment makers and customer or competitive pressures for ASIC providers. Sector exposure overlaps in semiconductors but diverges in value-chain positioning, with AMAT more sensitive to fab investment cycles and AVGO to end-market AI accelerator spending. Market sentiment reflects shared tailwinds tempered by valuation considerations and macroeconomic influences on technology spending.
Tickeron AI Verdict
Based on observable factors including recent earnings consistency, demand visibility, and relative positioning within the AI supply chain, Tickeron’s AI would currently assign a modestly higher probability of favorable trend continuation to Applied Materials. The company’s record quarterly results and elevated guidance provide a clear near-term catalyst backdrop, supported by expanding partnerships in advanced packaging. Broadcom maintains strong fundamentals through revenue scale and bookings, yet upcoming earnings introduce additional variables. This assessment remains probabilistic and tied to continuing market conditions rather than a definitive ranking.
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.
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 3 TA indicator(s) are bullish while AVGO’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 3 bullish, 4 bearish.
- AVGO’s TA Score: 5 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -1.51% price change this week, while AVGO (@Semiconductors) price change was -2.95% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +0.18%. For the same industry, the average monthly price growth was -11.74%, and the average quarterly price growth was +27.41%.
The average weekly price growth across all stocks in the @Semiconductors industry was +1.23%. For the same industry, the average monthly price growth was -4.52%, and the average quarterly price growth was +45.13%.
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 (+0.18% 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 (+1.23% 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 | 361B | 1.7T | 21% |
| EBITDA | 11.5B | 42.4B | 27% |
| Gain YTD | 77.568 | 3.789 | 2,047% |
| P/E Ratio | 39.23 | 45.65 | 86% |
| Revenue | 30.8B | 75.5B | 41% |
| Total Cash | 9.23B | 19.6B | 47% |
| Total Debt | 7.35B | 64.9B | 11% |
AMAT | AVGO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 45 | 12 | |
SMR RATING 1..100 | 25 | 27 | |
PRICE GROWTH RATING 1..100 | 39 | 60 | |
P/E GROWTH RATING 1..100 | 8 | 97 | |
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 (67) 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 (12) in the Semiconductors industry is somewhat better than the same rating for AMAT (45) in the Electronic Production Equipment industry. This means that AVGO’s stock grew somewhat faster than 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 (27) 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 (39) in the Electronic Production Equipment industry is in the same range as AVGO (60) 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 (97) 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 78% | 4 days ago 75% |
| Stochastic ODDS (%) | 4 days ago 83% | 4 days ago 86% |
| Momentum ODDS (%) | 4 days ago 72% | 4 days ago 69% |
| MACD ODDS (%) | 4 days ago 73% | 4 days ago 63% |
| TrendWeek ODDS (%) | 4 days ago 66% | 4 days ago 60% |
| TrendMonth ODDS (%) | 4 days ago 67% | 4 days ago 68% |
| Advances ODDS (%) | 27 days ago 78% | 18 days ago 81% |
| Declines ODDS (%) | 5 days ago 65% | 5 days ago 58% |
| BollingerBands ODDS (%) | N/A | 4 days ago 77% |
| Aroon ODDS (%) | 4 days ago 61% | 4 days ago 86% |
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 90% 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% | +4.31% | ||
| LRCX - AMAT | 90% Closely correlated | +5.12% | ||
| KLAC - AMAT | 87% Closely correlated | +7.32% | ||
| ONTO - AMAT | 83% Closely correlated | +6.16% | ||
| NVMI - AMAT | 81% Closely correlated | +5.50% | ||
| ASML - AMAT | 81% Closely correlated | +4.17% | ||
More | ||||