Intuit vs Applied Materials
Tax and accounting software giant for businesses and consumers vs Leading equipment provider for chip and display manufacturing. Which is the better buy for your portfolio in September 2026? Plain-English answer below.
Intuit owns the small-business and consumer financial-software stack through QuickBooks and TurboTax, while Applied Materials equips chipmakers with the semiconductor deposition and etching tools that build every modern processor. Both companies print formidable free cash flow and carry premium valuations. Intuit vs Applied Materials puts a fintech software platform against a capital-equipment enabler of the AI-chip buildout so you can weigh software compounding against semiconductor-cycle torque.
Intuit owns the small-business and consumer financial-software stack through QuickBooks and TurboTax, while Applied Materials equips chipmakers with the semiconductor deposition and etching tools that...
Why It’s Moving
Intuit Shares Rebound on Analyst Conviction Despite AI Disruption Fears and Portfolio Exits
- A prominent Wall Street analyst has countered the prevailing bearish sentiment, suggesting that Intuit's decline of more than half its value is an overreaction to agentic AI fears and predicting near 50% gains ahead.
- Institutional headwinds emerged as Virtus SGA U.S. Large Cap Growth liquidated its position in Intuit, citing it as one of the largest detractors from portfolio performance alongside Netflix and Salesforce during Q2.
- Market anxiety intensified following reports that Meta's new Muse AI agent could reduce demand for legacy software offerings, causing broad risk-off moves in enterprise software stocks including Intuit.
AMAT Shares Defy AI Slowdown Fears as Analysts Cite Valuation Correction and Strong Fundamentals
- A rating upgrade highlights that while valuation has corrected, fundamentals have strengthened, with Q3 revenue up 25% year-over-year and robust Q4 guidance implying 51% year-over-year growth.
- Profitability metrics are improving significantly, with Q3 gross margins expanding by 150 basis points and operating margins expected to rise 640 basis points year-over-year in Q4 due to strong cost control.
- The stock recently outperformed the broader semiconductor group during a tech sell-off triggered by calls for an AI slowdown, gaining 4% as investors concentrated buying on equipment makers rather than chip designers.
Intuit Shares Rebound on Analyst Conviction Despite AI Disruption Fears and Portfolio Exits
- A prominent Wall Street analyst has countered the prevailing bearish sentiment, suggesting that Intuit's decline of more than half its value is an overreaction to agentic AI fears and predicting near 50% gains ahead.
- Institutional headwinds emerged as Virtus SGA U.S. Large Cap Growth liquidated its position in Intuit, citing it as one of the largest detractors from portfolio performance alongside Netflix and Salesforce during Q2.
- Market anxiety intensified following reports that Meta's new Muse AI agent could reduce demand for legacy software offerings, causing broad risk-off moves in enterprise software stocks including Intuit.
AMAT Shares Defy AI Slowdown Fears as Analysts Cite Valuation Correction and Strong Fundamentals
- A rating upgrade highlights that while valuation has corrected, fundamentals have strengthened, with Q3 revenue up 25% year-over-year and robust Q4 guidance implying 51% year-over-year growth.
- Profitability metrics are improving significantly, with Q3 gross margins expanding by 150 basis points and operating margins expected to rise 640 basis points year-over-year in Q4 due to strong cost control.
- The stock recently outperformed the broader semiconductor group during a tech sell-off triggered by calls for an AI slowdown, gaining 4% as investors concentrated buying on equipment makers rather than chip designers.
Investment Analysis
Intuit
INTU
Pros
- Intuit reported a 16% revenue increase in fiscal 2025, reaching $18.8 billion, with fourth-quarter revenue growth of 20%, demonstrating strong top-line momentum.
- The company is advancing AI innovation with virtual AI agents integrated across QuickBooks, TurboTax, and other platforms, driving automation and customer engagement.
- Strong growth in consumer segments, including a 47% jump in TurboTax Live revenues and 32% revenue rise for Credit Karma, expands monetization beyond seasonal tax services.
Considerations
- Despite solid revenue and profit growth, Intuit's trailing PE ratio above 47 and forward PE near 28 suggests relatively high valuation which may limit further upside.
- Stock price volatility remains a risk, evidenced by a 12.8% plunge over three months and a wide 52-week trading range from $532 to $814.
- Expansion into competitive mid-market enterprise software with Intuit Enterprise Suite involves execution risk as customer adoption and market penetration accelerate.
Pros
- Applied Materials benefits from its leadership position in semiconductor equipment, a sector critical for global chip manufacturing growth driven by AI and technology demand.
- Recent dividend yield and upward revisions in dividend payments demonstrate shareholder return focus alongside capital investment in technology.
- The company’s exposure to high-growth semiconductor markets aligns it well with broad technological trends such as AI, 5G, and electric vehicles.
Considerations
- Applied Materials’ stock price sits below its 52-week high, reflecting some market uncertainty and pressure from cyclical semiconductor industry dynamics.
- Performance metrics indicate sensitivity to global supply chain constraints and geopolitical tensions that can disrupt semiconductor production and capital expenditure.
- Valuation and analyst sentiment have shown mixed signals recently, suggesting near-term volatility and challenges in maintaining rapid earnings growth.
Intuit (INTU) Next Earnings Date
Intuit (INTU) is currently expected to report its next earnings on November 19, 2026. The report will cover fiscal first-quarter 2027, ended October 31, 2026. The date is listed as an estimate and could change if Intuit later confirms a different release schedule.
Applied Materials (AMAT) Next Earnings Date
Applied Materials (AMAT) is expected to report its next earnings on November 12, 2026, after the U.S. market close. The report will cover the company’s fiscal fourth quarter of 2026. The date is consistent with its historical pattern of releasing fiscal fourth-quarter results in November.
Intuit (INTU) Next Earnings Date
Intuit (INTU) is currently expected to report its next earnings on November 19, 2026. The report will cover fiscal first-quarter 2027, ended October 31, 2026. The date is listed as an estimate and could change if Intuit later confirms a different release schedule.
Applied Materials (AMAT) Next Earnings Date
Applied Materials (AMAT) is expected to report its next earnings on November 12, 2026, after the U.S. market close. The report will cover the company’s fiscal fourth quarter of 2026. The date is consistent with its historical pattern of releasing fiscal fourth-quarter results in November.
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