Applied Materials vs. Intel: Examining Revenue Growth Trajectories of These Artificial Intelligence Companies
Applied Materials has posted three consecutive quarterly gains and now generates $9.1 billion in revenue, while Intel's operating margin sits at half that of its competitor.
Applied Materials and Intel are two artificial intelligence-focused companies whose revenue growth trajectories have garnered attention. While both companies saw year-over-year sales declines in 2025, their 2026 performance has been more promising. Applied Materials reported a record high revenue of $9.1 billion in its fiscal third quarter, representing a 25% increase from the previous year.
This growth translated to a 43% increase in net income to $2.5 billion. Intel, on the other hand, saw a substantial 25% year-over-year jump in sales, with $16.1 billion in revenue for its fiscal Q2.
However, Intel's financial results for the same period ended with a significant net loss of $10.8 billion, largely due to a non-cash accounting charge related to shares owed under the CHIPS Act. Applied Materials' performance has been attributed to executive leadership under new CEO Lip-Bu Tan, who has initiated turnaround efforts, while Intel's success is also attributed to Tan's leadership.
Despite both companies benefiting from the AI boom, Applied Materials stands out as a top stock pick according to the Motley Fool Stock Advisor, while Intel was not included in their 2026 top 10 list.
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