Applied Materials vs. Taiwan Semiconductor Manufacturing: Comparing Revenue Growth Trends Between These Artificial Intelligence Companies
Key Points
Taiwan Semiconductor Manufacturing consistently generates a larger top-line result than Applied Materials, maintaining an uninterrupted lead across the past eight quarters.
As reported in U.S. dollars, Taiwan Semiconductor Manufacturing demonstrates a steady quarter-over-quarter upward trend in revenue across the observed timeline, while Applied Materials displays a flatter long-term trajectory characterized by occasional increases.
Investors evaluating the ongoing revenue trends for the two companies should carefully watch whether the expanding revenue gap continues to widen or eventually begins to narrow during upcoming quarterly reporting periods.
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Applied Materials: A Gradual Revenue Uptrend
Applied Materials (NASDAQ:AMAT) primarily generates its revenue by designing, developing, and manufacturing the complex wafer fabrication equipment and materials engineering tools used by its diverse base of global customers to produce integrated circuits.
This year, it officially unveiled a large research and development center in California designed specifically for collaborative engineering, and it additionally appointed a new executive to serve on its board of directors.
Taiwan Semiconductor Manufacturing: Consistent Revenue Expansion
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) primarily earns its revenue by operating as a global dedicated foundry, meaning it manufactures, packages, and meticulously tests complex integrated circuits on behalf of various third-party technology clients around the world.
While operating within a complex international regulatory environment, it announced a collaborative industry initiative to transition to advanced photomasks, and its first Arizona fabrication plant successfully reached production yield rates comparable to its primary facilities in Taiwan.
Why Revenue Matters for Investors
Revenue serves as the basic top-line indicator of the total capital flowing into a business from its core commercial operations before any operating expenses are deducted. Closely tracking this top-line financial figure helps investors understand the total scale and growth trajectory of a business.
Applied Materials vs. Taiwan Semiconductor Manufacturing Revenue over the last 8 quarters. Figures: Taiwan Semiconductor Manufacturing shown in U.S. dollars, converted from New Taiwan dollars.
Quarterly Revenue Trends for Both Companies
| Calendar quarter | Applied Materials Revenue | Taiwan Semiconductor Manufacturing Revenue |
|---|---|---|
| Q4 2024 | $7.2 billion (quarter ended Jan. 26, 2025) | $26.8 billion (quarter ended Dec. 31, 2024) |
| Q1 2025 | $7.1 billion (quarter ended April 27, 2025) | $25.5 billion (quarter ended March 31, 2025) |
| Q2 2025 | $7.3 billion (quarter ended July 27, 2025) | $30.3 billion (quarter ended June 30, 2025) |
| Q3 2025 | $6.8 billion (quarter ended Oct. 26, 2025) | $33.0 billion (quarter ended Sept. 30, 2025) |
| Q4 2025 | $7.0 billion (quarter ended Jan. 31, 2026) | $33.7 billion (quarter ended Dec. 31, 2025) |
| Q1 2026 | $7.9 billion (quarter ended April 26, 2026) | $35.8 billion (quarter ended March 31, 2026) |
| Q2 2026 | $9.1 billion (quarter ended July 26, 2026) | $40.2 billion (quarter ended June 30, 2026) |
| Q3 2026 | Not yet reported | $46.7 billion (quarter ended Sept. 30, 2026) |
Data source: Financial Modeling Prep. Taiwan Semiconductor Manufacturing's figures are converted from New Taiwan dollars to U.S. dollars. Data as of Oct. 22, 2026.
Foolish Take
Taiwan Semiconductor Manufacturing Company, popularly known as TSMC, delivers far greater revenue than Applied Materials despite both providing essential services for the semiconductor industry. That's because TSMC is the world's dominant pure-play semiconductor foundry, controlling over 70% of the market. Applied Materials sells specialized materials engineering, deposition, and etching systems to chipmakers like TSMC.
Thanks to the artificial intelligence boom, TSMC is experiencing historic demand for its manufacturing prowess. The same tailwind is helping Applied Materials this year, as sales have taken off. Its rapid revenue growth in recent quarters was marked by the highest quarter-over-quarter revenue growth in company history during its fiscal third quarter, ended July 26.
Applied Materials was able to achieve this due to diligent planning and foresight. It nearly doubled its total manufacturing footprint over the past several years, capped off by opening a state-of-the-art manufacturing center in Singapore during Q3. This enabled the company to build and ship equipment at an unprecedented rate to fuel the global AI infrastructure surge.
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Robert Izquierdo has positions in Applied Materials and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Applied Materials and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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