What happened
Broadcom reported record fiscal Q3 revenue of $29.6 billion, an 86% year-over-year jump, including $16.7 billion in AI semiconductor revenue — up 221%. Applied Materials posted record $9.1 billion, up 25%.
Why it matters
The divergence suggests Broadcom's AI offerings are driving stronger customer demand, while Applied Materials' rebound reflects a recovery from prior uneven growth.
What to watch
Whether Broadcom can sustain its rapid AI revenue growth and whether Applied Materials can maintain its rebound are key tests ahead, as both companies navigate ongoing market conditions.
WHO IT HITSInvestors comparing AI-exposed semiconductor companies will note Broadcom's stronger growth trajectory, while Applied Materials' recovery may appeal to those focused on a rebound story.
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Applied Materials and Broadcom both serve the semiconductor and AI markets, but their recent revenue trends show different growth patterns. Applied Materials had uneven sales growth in 2025 due to U.S. government restrictions on semiconductor-related sales to China. It rebounded in 2026, achieving record revenue of $9.1 billion in its fiscal third quarter, ended July 26, which was a 25% year-over-year increase. Broadcom, meanwhile, has seen revenue rise every quarter, culminating in a record $29.6 billion in its fiscal Q3, ended Aug. 2, an 86% year-over-year jump. A key factor was Broadcom's AI semiconductor revenue of $16.7 billion, a 221% increase from the previous year. The comparison highlights how Broadcom's AI offerings are driving stronger customer demand, while Applied Materials' recovery reflects a return to positive growth after prior challenges. For investors, the question is whether Broadcom can maintain its rapid AI revenue growth and whether Applied Materials can sustain its rebound, as both companies navigate ongoing market conditions.
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