Applied Materials vs. Qualcomm: What Revenue Trends Tell Investors About These Artificial Intelligence Companies
Key Points
Although Qualcomm generated consistently higher total revenue across all of the past eight quarters, Applied Materials recently exhibited a stronger upward trajectory that changes the comparative dynamic between the businesses.
Applied Materials reported a largely steady quarter-over-quarter baseline before achieving consecutive broad increases, whereas Qualcomm recorded a shifting trajectory that culminated in sequential declines recently.
Investors evaluating these two companies should watch to see if the shrinking revenue gap continues to narrow or if the historical financial separation reestablishes itself in upcoming reporting periods.
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Applied Materials: A Late Upward Revenue Move
Applied Materials (NASDAQ:AMAT) generates the vast majority of its revenue by engineering, developing, manufacturing, and actively servicing the highly specialized equipment and advanced materials that global customers require to fabricate modern integrated circuits powering everyday electronic devices.
It recently introduced six new specialized manufacturing systems designed to address complex fabrication processes, and it simultaneously expanded its active research and development network by formally engaging with the University of California, Berkeley.
Qualcomm: Shifting Revenue With Recent Sequential Drops
Qualcomm (NASDAQ:QCOM) earns most of its global revenue by developing and supplying advanced integrated circuits for wireless networks, investing in early-stage communication technologies, and systematically licensing its essential patents to external device manufacturers.
It officially unveiled a new hardware brand named Dragonfly to support modern data center operations, while it concurrently expanded its broader technology portfolio by completing the outright corporate acquisition of an emerging artificial intelligence software company.
Why Revenue Matters for Investors
Revenue gives everyday investors a straightforward, objective way to track ongoing customer demand and reliably measure the basic operating scale of any enterprise. Closely tracking this top-line financial figure helps investors understand the total scale and growth trajectory of a business.
Quarterly Revenue for Applied Materials and Qualcomm
| Calendar quarter | Applied Materials Revenue | Qualcomm Revenue |
|---|---|---|
| Q3 2024 | $7.0 billion (quarter ended Oct. 27, 2024) | $10.2 billion (quarter ended Sept. 30, 2024) |
| Q4 2024 | $7.2 billion (quarter ended Jan. 26, 2025) | $11.7 billion (quarter ended Dec. 29, 2024) |
| Q1 2025 | $7.1 billion (quarter ended April 27, 2025) | $11.0 billion (quarter ended March 30, 2025) |
| Q2 2025 | $7.3 billion (quarter ended July 27, 2025) | $10.4 billion (quarter ended June 29, 2025) |
| Q3 2025 | $6.8 billion (quarter ended Oct. 26, 2025) | $11.3 billion (quarter ended Sept. 28, 2025) |
| Q4 2025 | $7.0 billion (quarter ended Jan. 25, 2026) | $12.3 billion (quarter ended Dec. 28, 2025) |
| Q1 2026 | $7.9 billion (quarter ended April 26, 2026) | $10.6 billion (quarter ended March 29, 2026) |
| Q2 2026 | $9.1 billion (quarter ended July 26, 2026) | $9.9 billion (quarter ended June 28, 2026) |
Data source: Financial Modeling Prep. Data as of Sept. 21, 2026.
Foolish Take
The revenue trends between Applied Materials and Qualcomm reveal key insights for investors. The artificial intelligence boom has galvanized sales expansion for the former, while the latter attempts to shift its business more toward the AI sector's needs to reenergize growth.
Applied Materials produces essential equipment for AI chip manufacturers, and its revenue of $9.1 billion in its fiscal third quarter, ended July 26, was a record high, demonstrating the rising demand for its offerings. The rapid expansion of AI infrastructure has created a massive need for semiconductor chips, and in an effort to meet that demand, manufacturers are buying more of Applied Materials' products. As a result, the company's sales have nearly caught up with Qualcomm's, which would have seemed unthinkable in 2024.
That said, the AI explosion isn't the only reason for Applied Materials revenue to rival Qualcomm. The handset company's sales experienced steady quarter-over-quarter declines in 2026 as the market for mobile devices matures. Consequently, Qualcomm shifted greater focus toward the AI data center market. It appears to be gaining traction here, since the company gained Amazon as one of its AI customers in September.
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Robert Izquierdo has positions in Amazon and Qualcomm. The Motley Fool has positions in and recommends Amazon, Applied Materials, and Qualcomm. The Motley Fool has a disclosure policy.
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