Applied Materials: record quarter, 50% growth guide

The comparison pairs an equipment supplier that sells to a small number of large chip factories with a designer that sells processors into data centers, personal computers and game consoles. That difference shapes the numbers: for fiscal 2025, Applied Materials reported revenue of nearly $28.4 billion, net income of roughly $7.0 billion and a net margin of about 24.7%, though the margin slipped from 26.4% as its income tax provision more than doubled. The other company reached about $34.6 billion in 2025 revenue, up about 34.3%, with net income of roughly $4.3 billion and a net margin of about 12.5%.

The article also lays out the risk each side carries. Applied Materials faces export controls and trade policy, particularly involving China, which accounted for about 30% of its revenue in fiscal 2025, and on Feb. 11, 2026 it agreed to pay $252.5 million to the U.S. Commerce Department to resolve allegations that certain customer shipments to China between November 2020 and July 2022 did not comply with export regulations. The other company faces dilution: warrants issued to OpenAI and Meta Platforms could together equal about 20% of roughly 1.63 billion shares outstanding, and a pending all-stock purchase of World Labs valued at approximately $8.2 billion would add more.

What tips the verdict is the direction of travel after the full-year figures. The author reasons that the growth gap supporting the higher-multiple stock appears to be narrowing, which is why the steadier, more profitable equipment supplier gets the nod — while still noting room to own both for patient, diversified investors. Whether that reading holds depends on the October-quarter guidance being met rather than missed, and on how export rules and the dilution milestones play out.