Applied Materials vs. Broadcom: Which Semiconductor Stock Is a Better Buy in 2026?
Broadcom has locked-in AI revenue commitments from the world's largest tech companies, while Applied Materials offers broad chip equipment exposure across the semiconductor manufacturing build-out.
Overview
Should you invest in the machines that build the chips or the company that designs them? Choosing between Applied Materials (NASDAQ:AMAT) and Broadcom (NASDAQ:AVGO) depends on your specific goals for 2026.
Applied Materials provides the heavy-duty equipment required to manufacture modern semiconductors, while Broadcom focuses on designing chips and enterprise software. Both companies are essential to global technology infrastructure, but they offer different paths to growth. This comparison evaluates their financials and risks to help you decide which stock is a better buy.
Details
In its latest annual report, filed for the fiscal year ended in late 2025, Applied Materials described its leadership in materials engineering for the semiconductor industry. The company provides the essential equipment and software used by major manufacturers like Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to build advanced chips. Customer concentration like this adds a layer of risk to the business, as two primary customers accounted for approximately 19% and 15% of its fiscal 2025 net revenue.
Source
Originally published at www.fool.com.