What happened
Broadcom reported record quarterly revenue of $29.6 billion for its fiscal Q3 ended Aug. 2, an 86% year-over-year jump, while Applied Materials posted record revenue of $9.1 billion for its quarter ended July 26, a 25% year-over-year increase.
Why it matters
The gap shows Broadcom's AI-driven sales are scaling much faster than Applied Materials' chipmaking-equipment business, even though both companies set quarterly revenue records.
What to watch
Applied Materials' revenue dipped in three quarters of 2025 under U.S. government restrictions on semiconductor-related sales to China, so its rebound hinges on whether that drag stays lifted.
WHO IT HITSInvestors weighing exposure to AI hardware will see Broadcom's revenue compounding quarterly while Applied Materials' growth is tied to chip-equipment demand and China export policy.
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Applied Materials sells specialized manufacturing equipment and factory automation software to chipmakers, while Broadcom supplies networking semiconductors and infrastructure software to large technology and telecom firms. Both are positioned to benefit from AI demand, but their recent financials tell different stories about how directly that demand is flowing through.
The quarter-by-quarter revenue table shows Broadcom's sales climbing every quarter from $14.1 billion in the quarter ended Nov. 3, 2024, to $29.6 billion in the quarter ended Aug. 2, 2026. Applied Materials, by contrast, recorded uneven growth in 2025 as U.S. government restrictions on semiconductor-related sales to China weighed on results, then rebounded in 2026 with its record $9.1 billion quarter. Broadcom's results also came as it navigated workforce reductions and faced a legal request from European cloud infrastructure providers to halt its termination of the VMware Cloud Service Provider program.
The divergence suggests that Broadcom's AI-linked sales are converting into revenue faster right now, while Applied Materials' recovery depends on whether its China-related headwinds stay lifted and chipmakers keep expanding capacity. For investors, the two trajectories offer different timing profiles: Broadcom's growth is already visible in sequential quarterly gains, whereas Applied Materials' rebound is only one quarter old.
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