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NVIDIA Corporation (NVDA) experienced a 62% year-over-year revenue increase, reaching $57 billion in Q3 of fiscal 2026. The company’s data center business, a key driver, brought in $51.22 billion, accounting for 89.8% of total sales. NVIDIA’s EPS also surged by 60% to $1.30, bolstered by heightened demand for its GPUs used in AI applications.
Applied Materials, Inc. (AMAT) reported a 3% decline in revenue and a 6% drop in non-GAAP EPS in its latest financial results for Q4 of fiscal 2025. Despite strong demand for its semiconductor fabrication equipment, its growth is hindered by U.S.-China trade tensions and export restrictions. For fiscal 2026, AMAT anticipates just 2% revenue growth and a 1.4% increase in EPS.
As of now, NVIDIA is favored for investment over Applied Materials due to its stronger growth outlook, driven by the AI boom, while AMAT faces significant near-term challenges. The forward price-to-earnings (P/E) ratio stands at 26.54 for NVIDIA and 26.18 for Applied Materials, reflecting the competitive landscape of the semiconductor market.
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