Better Buy: Universal Display vs. Applied Materials

A great growth stock typically involves a well-run business capitalizing on an emerging trend that will change the world. Two such early stage trends with that world-changing potential are artificial intelligence (AI) and the Internet of Things (IoT). 

We tend to think about these trends in terms of consumer-facing products like Apple's iPhone. But who is behind the scenes making production possible? Two such companies are Universal Display (NASDAQ: OLED) and Applied Materials (NASDAQ: AMAT). Which of these two is better positioned to benefit from these trends, and is therefore the better buy?

The first iPhone used an LCD screen, and this technology was fine for millions of phones over the years. But these days, OLEDs (for organic light emitting diodes) are increasingly replacing LCDs due to slimmer design, lower power consumption, and better picture quality. Top phones like Google's Pixel 4 and Apple's iPhone 11 Pro Max all sport the latest in OLEDs.

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Source Fool.com