The available evidence does not establish whether Applied Materials or Intel is the better stock to buy in 2026. Applied Materials reported strong quarterly results and issued higher-quarter guidance; Intel offers exposure to a product and manufacturing turnaround, but its latest filing shows that substantially all Intel Foundry activity still supported Intel’s own products. Without synchronized share prices, comparable valuation measures and a defined investment horizon, choosing a winner would go beyond the evidence available as of October 7, 2026.
Why these stocks are not a like-for-like comparison
Applied Materials sells semiconductor manufacturing equipment and services. Its results are tied in part to how much chipmakers invest in production capacity and process technology. Intel sells chip products and also operates manufacturing facilities, so it bears both product-market risks and the costs and execution demands of manufacturing.
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That difference matters when interpreting growth or earnings. Equipment revenue and chip revenue have different drivers, margins and capital requirements. Strong results at one company do not automatically make its stock a better value, and the companies’ reported earnings should not be compared without checking whether they use the same accounting basis and period.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minute| Company | What the investment case depends on | Key question for investors |
|---|---|---|
| Applied Materials | Chipmakers’ equipment spending, demand across logic, memory and advanced packaging, and the company’s ability to deliver on its outlook. | Will customer spending and earnings momentum continue, and does the share price already reflect those expectations? |
| Intel | Product demand and competitiveness, process execution, manufacturing economics, and growth in external foundry customers. | Can manufacturing progress translate into sustained output, competitive economics and a larger external-customer business? |
What Applied Materials’ latest reported results show
Q3 FY2026 results
Applied Materials reported record revenue of $9.12 billion, up 25% year over year, and GAAP gross margin of 50.3% for Q3 FY2026, the quarter ended July 26, 2026. GAAP earnings per diluted share were $3.17. The company reported these results on August 13, 2026.
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Management’s Q4 FY2026 outlook
Also on August 13, management forecast Q4 FY2026 revenue of $10.25 billion, plus or minus $500 million, and non-GAAP diluted EPS of $4.02, plus or minus $0.20. These are forecasts, not reported results. The EPS outlook is non-GAAP and includes exclusions and assumptions described in the company’s release; it should not be treated as equivalent to Intel GAAP EPS.
The company attributed demand partly to AI-related investment and described expanding research partnerships. That is management’s explanation and expectation, not independent evidence that AI-related spending or earnings growth will persist. For an investor, the next questions are whether chipmakers keep investing at a pace consistent with the outlook and how broadly demand is spread across customer segments.
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What Intel’s latest results and foundry status show
The latest Intel results located for this comparison are for Q2 2026; its Q2 release also included an outlook for Q3. The available figures here do not support a complete, accurate Intel results table, so Intel revenue, margin, EPS and guidance numbers are not reproduced. Consult Intel’s Q2 2026 earnings release and Form 10-Q for those figures, checking the period and accounting basis before comparing them with Applied Materials.
Process progress is not the same as a scaled foundry business
Intel said Intel 18A-P had entered risk production. That is a development milestone, not proof of sustained high-volume production, competitive yields or meaningful revenue from external foundry customers.
Intel’s Q2 2026 Form 10-Q says substantially all Intel Foundry activity still supported Intel’s own products at that time, although the company was offering services to external customers and aimed to grow that business. The distinction is important: process progress does not by itself establish that external foundry operations have reached scale or attractive economics.
A large accounting item needs context
The Q2 filing also reported a $12.5 billion fair-value loss related to changes in the value of shares held in escrow under agreements with the U.S. government. This is a specific accounting item described in the filing; it is not a recurring operating loss or a direct measure of foundry performance. Investors should distinguish it from recurring results while still reviewing how such items affect reported earnings.
What could make each stock attractive—and what could go wrong
Applied Materials: operating momentum versus spending-cycle risk
The case for Applied Materials rests on its reported record Q3 revenue and EPS and management’s forecast for higher Q4 revenue and non-GAAP EPS. The counter-question is whether customer equipment spending can sustain the pace implied by that forecast. A slowdown, a shift in customer investment or demand concentrated in fewer areas could change the trajectory.
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- Track customer spending across leading-edge logic, memory and advanced packaging rather than assuming one demand driver represents the whole business.
- Check whether reported growth translates into durable margins and cash generation across different equipment-spending conditions.
- Compare the company’s outlook with the expectations already reflected in its share price; the available evidence does not establish that valuation.
Intel: turnaround potential versus execution and capital demands
The Intel case depends on product demand and execution, continued process progress, and whether manufacturing investment can yield competitive economics and a larger external-customer business. The risks include delays or poor yields, continuing foundry losses and capital needs, and milestones that fail to translate into sustained profitability. The available evidence does not justify assigning probabilities to these outcomes.
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- Look for evidence of sustained manufacturing performance, not just a process milestone.
- Assess whether external customer activity is growing enough to change the economics of the foundry operation.
- Examine product competitiveness, capital expenditure, cash generation and the funding required to execute the manufacturing strategy.
How to decide which stock fits your investment case
A fair comparison needs market data from the same date and financial measures on consistent terms. The evidence available as of October 7, 2026 does not provide verified synchronized prices or comparable forward valuation multiples for the two stocks. Without them, strong operating results cannot answer whether either share price is attractive.
- Set a common market-data date. Use share prices from the same date for both companies, along with financial statements and forecasts available on that date.
- Label valuation measures precisely. Compare trailing and forward multiples only when the earnings period and GAAP or non-GAAP basis are clear and consistent.
- Compare financial resilience. Review revenue and operating-margin trends, free cash flow, capital expenditure, balance sheets and share-count changes. Interpret these in light of the companies’ different business models.
- Test the company-specific assumptions. For Applied Materials, focus on customer investment cycles and the mix of logic, memory and advanced-packaging demand. For Intel, focus on product competitiveness, process execution, foundry losses, external-customer adoption and manufacturing cash needs.
- Match the choice to your horizon and risk tolerance. A business with more execution uncertainty may not suit the same investor or holding period as a company whose results are more directly tied to customer investment cycles.
Applied Materials’ next listed Q4 FY2026 earnings call was projected for November 12, 2026. That date is after the October 7 information cutoff used here, so Q4 results should not be treated as known in this comparison.
Sources and date limits
The company-specific figures and status descriptions above are based on Applied Materials’ Q3 FY2026 earnings release dated August 13, 2026, Intel’s Q2 2026 earnings release and Intel’s Q2 2026 Form 10-Q. This comparison reflects information available through October 7, 2026; company results, guidance, valuation and reporting dates can change. The Applied Materials Q4 FY2026 call was projected for November 12, 2026, and no results from that call are included here.
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