Applied Materials vs. Intel: Which Tech Stock Is a Better Buy in 2026?

One company builds the tools, while the other builds the chips and the factories. Choosing between Applied Materials (NASDAQ:AMAT) and Intel (NASDAQ:INTC) means deciding where you see the most value.

Applied Materials provides the essential equipment used to manufacture semiconductors, making it a critical supplier to the entire industry. Intel is a traditional chipmaker shifting its focus toward becoming a global foundry. Comparing these two reveals different ways to play the growth of the technology sector.

In its latest annual report, Applied Materials describes itself as a leader in materials engineering solutions used to create nearly all new chips and advanced displays globally. Its business model relies on the ongoing expansion of global chip manufacturing capacity among semiconductor stocks. Customer concentration like this adds a layer of risk to the business, as two customers accounted for approximately 19% and 15% of net revenue in fiscal 2025.

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