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

$165.03B

Market Cap

$253.31B

21.18%

Potential Profit

-20.67%

Buy

Analyst Rating

Buy

Why It's Moving

QCOM Stock Climbs 1.9% on Stellar Earnings Beat Fueling AI Optimism.

Earnings topped forecasts by $0.13 on EPS and $530 million on revenue, highlighting sustained momentum in semiconductor sales.
Q1 2026 guidance set at $3.30-$3.50 EPS signals continued growth potential in key markets like AI and automotive.
Analysts maintain a 'Moderate Buy' consensus with an average price target of $192.94, reflecting positive sector tailwinds.

Sentiment:

🐃Bullish

Analysts Boost AMAT Targets Amid AI Memory Surge, Despite Export Headwinds

Needham hiked its price target to $390 and KeyBanc to $380, spotlighting AMAT's edge in memory/AI expansion and vertical scaling opportunities.
Q4 display revenues soared 68% on advanced systems, better pricing, and surging OLED demand, signaling potential reacceleration in that segment.
Fiscal Q1 2026 earnings due February 12, where guidance on China risks, memory demand, and pricing could sway near-term momentum.

Sentiment:

🐃Bullish

QCOM Stock Climbs 1.9% on Stellar Earnings Beat Fueling AI Optimism.

Earnings topped forecasts by $0.13 on EPS and $530 million on revenue, highlighting sustained momentum in semiconductor sales.
Q1 2026 guidance set at $3.30-$3.50 EPS signals continued growth potential in key markets like AI and automotive.
Analysts maintain a 'Moderate Buy' consensus with an average price target of $192.94, reflecting positive sector tailwinds.

Sentiment:

🐃Bullish

Analysts Boost AMAT Targets Amid AI Memory Surge, Despite Export Headwinds

Needham hiked its price target to $390 and KeyBanc to $380, spotlighting AMAT's edge in memory/AI expansion and vertical scaling opportunities.
Q4 display revenues soared 68% on advanced systems, better pricing, and surging OLED demand, signaling potential reacceleration in that segment.
Fiscal Q1 2026 earnings due February 12, where guidance on China risks, memory demand, and pricing could sway near-term momentum.

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.

Related Market Insights

The Brain-Inspired Computing Revolution: Why Neuromorphic Chips Could Transform AI

Including recognizable tickers (or names like NVIDIA) significantly increases CTR because it anchors a complex new technology (Neuromorphic) to companies users already trust and want to buy.