Applied Materials vs. Qualcomm: What Revenue Trends Tell Investors About These Artificial Intelligence Companies

Axe Cap view

Applied Materials Closing the Gap on Qualcomm in AI Race

AI is reshaping semiconductor demand and investors should reconsider exposure to these key players.

Applied Materials (AMAT) is riding a clear wave as AI chip demand fuels its semiconductor equipment sales, with revenue hitting record highs. This bodes well for companies supplying the AI infrastructure backbone. Qualcomm (QCOM), by contrast, faces a tougher path. Its traditional mobile handset market is maturing and revenue is rolling over, despite efforts to pivot toward AI data center chips. In South Africa, the direct stock plays are limited, so watching the USD/ZAR currency pair remains useful. A stronger dollar could pressure rand-earnings-sensitive tech stocks like Naspers and Prosus, which have significant overseas exposure. Meanwhile, local demand for AI hardware remains nascent, keeping the main action offshore. Investors should tilt toward exposure linked to AI infrastructure growth rather than legacy mobile tech. That might mean avoiding Qualcomm and watching Applied Materials indirectly through the rand and SA tech heavyweights. But if Qualcomm successfully repositions itself, especially in AI data centers, this view could change fast. this is just our opinion and not financial advice