AMAT vs QCOM: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and QUALCOMM Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
QUALCOMM Incorporated · Technology
$134.47
+45.0% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
QCOM has more upside to fair value
(+45.0%).
QCOM trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
QCOM |
| Current Price |
$406.91 |
$134.47 |
| Fair Value Estimate |
$358.00 |
$194.98 |
| Upside to Fair Value |
-12.0%
|
+45.0%
|
| Market Cap |
$322.9B |
$143.6B |
| Forward P/E |
30.3x
|
26.8x
|
| EV / EBITDA |
30.2x
|
—
|
| Price / Sales |
10.2x
|
3.2x
|
| Price / FCF |
51.6x
|
11.1x
|
| Revenue Growth YoY |
+11.0%
|
+8.7%
|
| Gross Margin |
49.9%
|
55.1%
|
| Operating Margin |
31.9%
|
27.1%
|
| Return on Equity |
47.0%
|
21.6%
|
| Dividend Yield |
0.45% |
— |
| FCF Yield |
1.94%
|
9.0%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Qualcomm Incorporated is a leading semiconductor company specializing in wireless chipsets and IP licensing, with dominant positions in 5G modems via QCT (87% of revenue) and steady QTL royalties. The business excels through a vast patent moat, diversification into automotive and IoT, and robust growth (revenue +13% YoY to $44B in FY2025), but faces risks from Apple modem shifts and China exposur…
Accumulation Zones
| Metric |
AMAT |
QCOM |
| Zone Low |
$268.50 |
$146.23 |
| Zone High |
$304.30 |
$165.73 |
| In Buy Zone? |
No
|
Yes
|