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Applied Materials vs. Qualcomm: Where to Invest?
15 Sep
Summary
- Applied Materials' fiscal 2025 revenue was nearly $28.4 billion.
- QUALCOMM's fiscal 2025 revenue increased by 13.7% to $44.3 billion.
- Both companies rely heavily on a few major customers for revenue.
As the digital economy advances in 2026, investors consider two key players in the semiconductor industry: Applied Materials (AMAT) and QUALCOMM (QCOM). Applied Materials manufactures the essential machinery for semiconductor fabrication, while QUALCOMM designs processors and wireless technologies.
Applied Materials' fiscal year ending October 26, 2025, saw revenue reach nearly $28.4 billion, a 4.4% rise year-over-year. Net income was approximately $7 billion, with a net margin of 24.7%. The company operates with a low debt-to-equity ratio of about 0.3 and a current ratio of 2.6, generating nearly $5.7 billion in free cash flow for fiscal 2025.
QUALCOMM, whose fiscal year ended September 28, 2025, reported revenue of approximately $44.3 billion, up 13.7% from the previous year. However, net income decreased to nearly $5.5 billion, with a net margin close to 12.5%, influenced by increased research and development expenses.
Both companies exhibit significant customer concentration. Applied Materials noted two customers accounted for roughly 34% of its revenue, while QUALCOMM highlighted Apple, Samsung, and Xiaomi as each representing over 10% of its consolidated revenues. These dependencies represent unique risks for each company.
