Applied Materials, Inc. (AMAT) vs Costco Wholesale Corporation (COST)

Applied Materials Inc. is the world’s largest manufacturer of semiconductor wafer fabrication equipment, with a broad portfolio covering nearly every segment of the WFE ecosystem. The company holds a leading market share in deposition technologies, which involve adding new material layers to semiconductor wafers. Applied Materials has greater exposure to general-purpose logic chips produced by integrated device manufacturers and foundries. Its customer base includes some of the world’s largest chipmakers, such as TSMC, Intel, and Samsung.

Founded in 1983, Costco Wholesale Corp operates a global network of membership-only warehouse clubs focused on offering high-quality products and services at consistently low prices. In its latest fiscal year, the company ran approximately 910 warehouses and served more than 80 million members across three geographic segments: Costco U.S., which generated about 73% of total revenue, Costco Canada at 13%, and Costco International at 14%. Costco’s core value proposition—quality merchandise at highly competitive prices—has supported strong membership renewal rates, reaching 93% in the U.S. and Canada and nearly 90% internationally. Roughly 55% of fiscal 2025 revenue came from grocery sales, while general merchandise contributed another 25%.