Qualcomm vs Applied Materials

Qualcomm and Applied Materials are examined side by side to illuminate their business models, financial performance, and market context. This page presents a neutral, accessible comparison of how each company creates value, operates, and faces industry dynamics. Educational content, not financial advice.

Qualcomm and Applied Materials are examined side by side to illuminate their business models, financial performance, and market context. This page presents a neutral, accessible comparison of how each...

Comparison Snapshot

Key Financial Metrics

QCOM

Metric

AMAT

$163.00B

Market Cap

$260.66B

21.52%

Potential Profit

-19.63%

Buy

Analyst Rating

Buy

Why It's Moving

Qualcomm Faces Analyst Price Target Cuts Ahead of Q1 Earnings Amid Handset Headwinds

JPMorgan cut its price target to $195 from $210 while staying Overweight, expecting Apple to boost the quarter but warning of licensing revenue pressure and higher expenses from Alphawave, Ventana, and Augentix deals.
Cantor Fitzgerald and Mizuho reiterated Neutral ratings and slashed targets to $160, forecasting a solid Q1 beat but guidance below consensus due to Samsung modem shifts, China declines, and global handset sales dropping 4% in 2026.
Despite near-term challenges like Apple's modem insourcing, analysts highlight Qualcomm's attractive 13x NTM valuation and growth in edge-AI, PCs, IoT, and automotive to drive future re-rating.

Sentiment:

⚖️Neutral

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Qualcomm Faces Analyst Price Target Cuts Ahead of Q1 Earnings Amid Handset Headwinds

JPMorgan cut its price target to $195 from $210 while staying Overweight, expecting Apple to boost the quarter but warning of licensing revenue pressure and higher expenses from Alphawave, Ventana, and Augentix deals.
Cantor Fitzgerald and Mizuho reiterated Neutral ratings and slashed targets to $160, forecasting a solid Q1 beat but guidance below consensus due to Samsung modem shifts, China declines, and global handset sales dropping 4% in 2026.
Despite near-term challenges like Apple's modem insourcing, analysts highlight Qualcomm's attractive 13x NTM valuation and growth in edge-AI, PCs, IoT, and automotive to drive future re-rating.

Sentiment:

⚖️Neutral

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Investment Analysis

Qualcomm

QCOM

Pros

Qualcomm reported strong revenue growth and exceeded earnings expectations in Q4 2025, reflecting robust demand for its semiconductor products.
The company achieved record free cash flow of $12.8 billion for the fiscal year, indicating solid operational efficiency and financial health.
Qualcomm continues to innovate with new product launches, such as the Snapdragon 8 Elite Gen 5, supporting its competitive position in mobile platforms.

Considerations

Qualcomm's stock has underperformed compared to broader semiconductor industry averages over the past year, with limited upside momentum.
The company faces ongoing exposure to cyclical demand in the smartphone market, which could impact future revenue stability.
Qualcomm's valuation, while reasonable, is less attractive than some peers, with a forward P/E ratio above the sector median.

Applied Materials

AMAT

Pros

Applied Materials has demonstrated strong multi-year total returns, outperforming many peers in the semiconductor equipment sector.
The company benefits from its leading position in manufacturing technology, supplying critical equipment for semiconductor fabrication globally.
Applied Materials maintains a lower dividend yield but has a solid balance sheet and consistent cash flow generation.

Considerations

Applied Materials is exposed to capital expenditure cycles in the semiconductor industry, making its revenues sensitive to market downturns.
The company's trailing and forward P/E ratios are higher than Qualcomm's, suggesting a relatively more expensive valuation.
Recent earnings estimate revisions for Applied Materials are less positive compared to some competitors, indicating weaker near-term outlook momentum.

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