Applied Materials vs. Advanced Micro Devices: Which Semiconductor Stock Is a Better Buy in 2026?

The article compares Applied Materials, which manufactures semiconductor equipment, and Advanced Micro Devices (AMD), which designs high-performance processors. While both benefit from AI demand, AMD is recommended as the better buy due to its direct competition in the AI chip market, six consecutive quarters of above-30% growth, and strategic partnerships with major AI companies. Applied Materials is viewed as a solid diversified play but lacks AMD's central position in the AI boom.