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ADI vs AMAT
Which Stock Would AI Choose? Analog Devices (ADI) vs. Applied Materials (AMAT) Stock Comparison
Key Takeaways
- Analog Devices is a diversified analog and mixed-signal chipmaker with fiscal 2025 revenue of roughly $11 billion (up 17%), while Applied Materials is the largest supplier of semiconductor manufacturing equipment with fiscal 2025 revenue near $28.4 billion (up about 4%).
- In 2025, AMAT delivered significantly stronger price appreciation (about 60%) than ADI (about 30%), but with materially higher volatility and drawdown risk.
- ADI posted double-digit, broad-based growth across all of its end markets in its latest reported quarter, whereas AMAT showed a modest year-over-year revenue decline tied to China export restrictions.
- ADI generates higher margins and free-cash-flow conversion; AMAT is more directly leveraged to AI data-center buildouts, memory, and advanced packaging demand.
- The two names carry different risk profiles: ADI faces cyclical and tariff-related macro risk, while AMAT faces concentrated China exposure and the cyclicality of capital spending.
Introduction
Both ADI and AMAT sit at the heart of the global semiconductor industry, yet they occupy very different positions within it. Analog Devices designs the analog, mixed-signal, and power chips that connect the physical and digital worlds, while Applied Materials builds the fabrication equipment used to manufacture virtually every advanced chip. This stock comparison is relevant for investors and traders weighing a steadier, more diversified semiconductor franchise against a more cyclical, AI-driven capital-equipment leader. Understanding their relative performance, growth drivers, and market positioning can help clarify which profile better suits a given portfolio in the current environment.
ADI Overview and Recent Performance
ADI, or Analog Devices, is a global semiconductor leader spanning industrial, automotive, communications, and consumer end markets. It reported fiscal 2025 revenue of roughly $11 billion, up about 17% year over year, with double-digit growth across all end markets in its latest quarter and record free cash flow (cash generated after capital spending) exceeding $4 billion, equal to about 39% of revenue. The company returned more than $4 billion to shareholders through dividends and buybacks over the fiscal year. Recent market activity has reflected a cyclical recovery in analog demand following a prolonged inventory correction, alongside growing content in automation, electrification, and data-center power. Sentiment has been supported by margin expansion and a more resilient industrial book, though management has cited limited near-term visibility and tariff-related uncertainty as watchpoints.
AMAT Overview and Recent Performance
AMAT, or Applied Materials, is the leading provider of materials-engineering solutions and semiconductor manufacturing equipment, supplying the wafer fabrication equipment (WFE) used to produce advanced logic, memory, and display chips. It reported fiscal 2025 revenue near $28.4 billion, a modest year-over-year increase, while its latest quarter showed a slight revenue decline as China export restrictions reduced its accessible market. China represented roughly 29% of revenue in that quarter, down from prior levels. Despite softer top-line growth, gross margin reached its highest level in 25 years, and the company returned about $6.3 billion to shareholders. Stock performance has been driven by enthusiasm around AI infrastructure investment, DRAM (dynamic random-access memory), and high-bandwidth memory, though higher volatility and China-related competition remain key concerns.
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Head-to-Head Comparison
The clearest contrast between these two stocks is their position in the semiconductor value chain. ADI sells high-margin analog and mixed-signal chips across a diversified customer base, giving it steadier demand but tying it to broad industrial and automotive cycles. AMAT sells the capital equipment behind chip production, making it a leveraged play on the capital-expenditure (capex) decisions of foundries and memory makers. This structural difference explains much of the recent divergence in momentum: AMAT has ridden AI-driven fab and packaging investment to larger gains, while ADI has climbed on a broader cyclical recovery. On stability, ADI has historically traded with lower beta (a measure of sensitivity to market swings) and shallower drawdowns, whereas AMAT's concentration in WFE and China exposure introduces greater cyclicality. Investors are effectively choosing between diversified, cash-generative chip design and higher-octane exposure to the AI buildout.
Tickeron AI Verdict
Weighing trend consistency, stability, catalysts, and relative positioning, Tickeron's AI framework would likely favor ADI on a stability-adjusted basis, reflecting its broad-based double-digit growth, higher margins, record free cash flow, and comparatively lower volatility. That said, AMAT has demonstrated stronger recent momentum and more direct leverage to AI infrastructure spending, which could appeal to a momentum-oriented model under different market conditions. The outcome is not definitive and would depend on the specific time horizon, risk tolerance, and strategy configuration of any given AI bot. A probabilistic reading suggests ADI currently holds a modest edge for consistency-oriented automated strategies, while AMAT remains a higher-risk, higher-momentum alternative.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ADI is a Hold and AMAT is a Hold.
ADI in upward trend: price rose above 50-day moving average on September 18, 2026
ADI moved above its 50-day moving average on September 18, 2026 date and that indicates a change from a downward trend to an upward trend. In 32 of 48 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 41 of 64 cases where ADI's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 64%.
The 10-day moving average for ADI crossed bullishly above the 50-day moving average on September 24, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +2.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADI advanced for three days, in 202 of 323 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 125 of 227 cases where ADI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Bearish Trend Analysis
The 10-day RSI Indicator for ADI moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 18 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 53%.
The Momentum Indicator moved below the 0 level on October 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ADI as a result. In 67 of 105 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for ADI turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 33 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
ADI broke above its upper Bollinger Band on September 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 12 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. ADI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 72 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.863) is normal, around the industry mean (6.538). P/E Ratio (47.929) is within average values for comparable stocks, (23.955). Projected Growth (PEG Ratio) (0.591) is also within normal values, averaging (3.761). Dividend Yield (0.011) settles around the average of (0.011) among similar stocks. P/S Ratio (12.804) is also within normal values, averaging (45.794).
Momentum Indicator for AMAT turns negative, indicating new downward trend
AMAT saw its Momentum Indicator move below the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned negative. In 60 of the 87 cases, the stock moved further down in the following days. The odds of a decline are at 69%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for AMAT turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 28 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
AMAT moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMAT crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
The Aroon Indicator for AMAT entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 251 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 16 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 25 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (12.664) is normal, around the industry mean (7.021). P/E Ratio (35.012) is within average values for comparable stocks, (95.827). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.005) settles around the average of (0.008) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
ADI | AMAT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 34 | 73 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 72 Overvalued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 12 | 51 | |
SMR RATING 1..100 | 63 | 25 | |
PRICE GROWTH RATING 1..100 | 41 | 54 | |
P/E GROWTH RATING 1..100 | 67 | 16 | |
SEASONALITY SCORE 1..100 | 50 | 90 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ADI's Valuation (72) in the Semiconductors industry is in the same range as AMAT (76) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to AMAT’s over the last 12 months.
ADI's Profit vs Risk Rating (12) in the Semiconductors industry is somewhat better than the same rating for AMAT (51) in the Electronic Production Equipment industry. This means that ADI’s stock grew somewhat faster than AMAT’s over the last 12 months.
AMAT's SMR Rating (25) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (63) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than ADI’s over the last 12 months.
ADI's Price Growth Rating (41) in the Semiconductors industry is in the same range as AMAT (54) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (16) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (67) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than ADI’s over the last 12 months.
| ADI | AMAT | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 53% | 2 days ago 79% |
| Stochastic ODDS (%) | 2 days ago 64% | 2 days ago 73% |
| Momentum ODDS (%) | 2 days ago 64% | 2 days ago 69% |
| MACD ODDS (%) | 2 days ago 65% | 2 days ago 62% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 67% |
| TrendMonth ODDS (%) | 2 days ago 61% | 2 days ago 70% |
| Advances ODDS (%) | 2 days ago 63% | 18 days ago 79% |
| Declines ODDS (%) | 4 days ago 57% | 7 days ago 66% |
| BollingerBands ODDS (%) | 2 days ago 56% | 2 days ago 89% |
| Aroon ODDS (%) | 2 days ago 55% | 2 days ago 63% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ADI’s FA Score shows that 1 FA rating(s) are green while AMAT’s FA Score has 2 green FA rating(s).
- ADI’s FA Score: 1 green, 4 red.
- AMAT’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ADI’s TA Score shows that 5 TA indicator(s) are bullish while AMAT’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 5 bullish, 5 bearish.
- AMAT’s TA Score: 4 bullish, 6 bearish.
Price Growth
ADI (@Semiconductors) experienced а +0.59% price change this week, while AMAT (@Electronic Production Equipment) price change was -8.44% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -8.11%. For the same industry, the average monthly price growth was -19.82%, and the average quarterly price growth was -12.10%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -10.99%. For the same industry, the average monthly price growth was -23.67%, and the average quarterly price growth was -33.55%.
Reported Earning Dates
ADI is expected to report earnings on Nov 24, 2026.
AMAT is expected to report earnings on Nov 12, 2026.
Industries' Descriptions
@Semiconductors (-8.11% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
@Electronic Production Equipment (-10.99% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
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