Applied Materials vs. Nvidia: Which Chip Stock Is a Better Buy in 2026?
Nvidia generated $96.6 billion in free cash flow last fiscal year on a 55.6% net margin, more than double Applied Materials' 24.7%.
Overview
The artificial intelligence spending boom has rewarded chip designers along with the companies that supply equipment to chip factories. Should you favor Applied Materials (NASDAQ:AMAT) or Nvidia (NASDAQ:NVDA) today?
Applied Materials provides the equipment and software used to manufacture semiconductors, and Nvidia designs the high-performance processors that power data centers and AI models.
Details
Both benefit from AI spending, but they sit at different points in the supply chain, making for a useful investment comparison.
Source
Originally published at www.fool.com.
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