AMAT vs AVGO: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Broadcom Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Broadcom Inc. · Technology
$379.86
-41.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
AVGO has more upside to fair value
(-41.0%).
AMAT trades at a lower forward P/E
(56.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
AVGO |
| Current Price |
$603.04 |
$379.86 |
| Fair Value Estimate |
$331.67 |
$223.93 |
| Upside to Fair Value |
-45.0%
|
-41.0%
|
| Market Cap |
$478.8B |
$1,806.8B |
| Forward P/E |
56.4x
|
61.3x
|
| EV / EBITDA |
43.0x
|
44.1x
|
| Price / Sales |
16.5x
|
23.9x
|
| Price / FCF |
80.3x
|
55.2x
|
| Revenue Growth YoY |
+11.4%
|
+47.9%
|
| Gross Margin |
49.0%
|
67.0%
|
| Operating Margin |
29.5%
|
43.7%
|
| Return on Equity |
39.8%
|
36.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
1.81%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
Broadcom Inc. is a leading technology company specializing in semiconductors and infrastructure software, with a business split nearly evenly between these two segments. The company benefits from a durable competitive moat driven by customer concentration in mission-critical infrastructure, high switching costs, and a broad portfolio spanning semiconductors and infrastructure software. Broadcom h…
Accumulation Zones
| Metric |
AMAT |
AVGO |
| Zone Low |
$248.75 |
$167.95 |
| Zone High |
$281.92 |
$190.34 |
| In Buy Zone? |
No
|
No
|