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ADI vs AMAT
Which Stock Would AI Choose? Analog Devices (ADI) vs. Applied Materials (AMAT) Stock Comparison
Key Takeaways
- Both ADI and AMAT have delivered strong gains amid semiconductor sector momentum, with AMAT leading YTD at approximately 60% versus ADI's 50%.
- AMAT, a leader in semiconductor manufacturing equipment, benefits from direct AI chip production demand, including recent NEXX acquisition for AI packaging.
- ADI focuses on analog and mixed-signal chips essential for AI data centers and industrial applications, showing robust revenue growth in these areas.
- AMAT trades at a lower P/E ratio (around 42) compared to ADI (around 74), suggesting relatively better valuation.
- Recent market activity highlights AI-driven catalysts for both, with AMAT posting stronger 1-year returns (168% vs. 108%).
Introduction
Analog Devices (ADI) and Applied Materials (AMAT) represent key players in the semiconductor ecosystem, powering the AI revolution and broader technology advancements. ADI specializes in analog, mixed-signal, and digital signal processing chips critical for data conversion and power management, while AMAT provides essential equipment for chip manufacturing. This stock comparison is relevant for traders seeking short-term momentum in AI-related themes and investors eyeing long-term growth in semiconductors. Amid surging demand for AI infrastructure, both stocks have outperformed broader indices, offering insights into relative performance, valuation, and sector exposure in the current market environment.
ADI Overview and Recent Performance
Analog Devices, Inc. (ADI) is a global leader in analog, mixed-signal, and digital signal processing integrated circuits (ICs). The company designs and manufactures products that bridge the physical and digital worlds, serving industrial, automotive, communications, and consumer markets. Key offerings include data converters, power management ICs (integrated circuits), amplifiers, and radio frequency/microwave ICs used in AI data centers, automotive electrification, and industrial automation.
In recent market activity, ADI has shown strong momentum, with shares rising over 30% in the past month and approximately 50% year-to-date, significantly outpacing the S&P 500. This performance reflects accelerating AI and data center revenue, now comprising about one-fifth of total sales, alongside robust industrial demand. Sentiment has been bolstered by analyst upgrades and expectations for EPS growth ahead of the May 20 earnings report. Factors influencing recent price behavior include broader semiconductor upcycles and AI infrastructure buildout, though higher beta (1.39) exposes it to sector volatility.
AMAT Overview and Recent Performance
Applied Materials, Inc. (AMAT) provides materials engineering solutions, including equipment, services, and software for semiconductor manufacturing. Operating through Semiconductor Systems and Applied Global Services segments, it enables critical processes like deposition, etching, and wafer inspection for logic, memory, and advanced packaging chips used in AI and high-performance computing.
Recent weeks have seen AMAT extend gains, up around 20% monthly and 60% year-to-date, driven by AI chip demand and new product launches for sub-2nm nodes. The acquisition of NEXX enhances AI packaging capabilities, fueling positive sentiment amid a stock rally. Upcoming earnings on May 14 are anticipated to show double-digit EPS growth, supported by strong DRAM equipment orders and foundry investments. Performance reflects sector tailwinds but carries higher risk with a beta of 1.65 and exposure to export restrictions.
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Head-to-Head Comparison
ADI and AMAT operate complementarily in semiconductors: ADI designs enabling components like power ICs and signal processors, while AMAT supplies fabrication equipment. Growth drivers differ—ADI leverages diversified end-markets (industrial ~50%, AI/data centers growing), AMAT rides direct AI/HPC capex cycles.
Recent momentum favors AMAT with superior YTD (60% vs. 50%) and 1-year (168% vs. 108%) returns, though both show monthly gains over 15-20%. Risk profiles contrast: AMAT's higher beta (1.65 vs. 1.39) and equipment cyclicality amplify volatility, while ADI offers stability via recurring analog demand. Sector exposure is pure-play semiconductors for both, but AMAT ties closer to foundry expansions. Market sentiment tilts toward AMAT on AI catalysts like NEXX, versus ADI's steady AI enabler role; valuations favor AMAT at lower P/E.
Tickeron AI Verdict
Tickeron’s AI currently favors AMAT due to superior trend consistency, stronger relative YTD/1-year performance, direct AI infrastructure catalysts like equipment for advanced nodes and the NEXX acquisition, and more attractive valuation. While ADI exhibits solid stability and AI/data center exposure, AMAT's positioning in the semiconductor upcycle suggests higher probabilistic near-term upside amid ongoing capex trends.
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. Disclaimers and Limitations
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.
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 undervalued. 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 2 FA rating(s) are green whileAMAT’s FA Score has 4 green FA rating(s).
- ADI’s FA Score: 2 green, 3 red.
- AMAT’s FA Score: 4 green, 1 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 3 TA indicator(s) are bullish while AMAT’s TA Score has 4 bullish TA indicator(s).
- ADI’s TA Score: 3 bullish, 5 bearish.
- AMAT’s TA Score: 4 bullish, 4 bearish.
Price Growth
ADI (@Semiconductors) experienced а +0.23% price change this week, while AMAT (@Electronic Production Equipment) price change was +0.27% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.47%. For the same industry, the average monthly price growth was +39.39%, and the average quarterly price growth was +81.10%.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.97%. For the same industry, the average monthly price growth was +20.42%, and the average quarterly price growth was +140.48%.
Reported Earning Dates
ADI is expected to report earnings on May 20, 2026.
AMAT is expected to report earnings on Aug 13, 2026.
Industries' Descriptions
@Semiconductors (+4.47% 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 (-0.97% 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.
| ADI | AMAT | ADI / AMAT | |
| Capitalization | 204B | 347B | 59% |
| EBITDA | 5.53B | 10.2B | 54% |
| Gain YTD | 54.424 | 70.110 | 78% |
| P/E Ratio | 76.32 | 41.07 | 186% |
| Revenue | 11.8B | 28.2B | 42% |
| Total Cash | 4.05B | 8.51B | 48% |
| Total Debt | 8.68B | 7.19B | 121% |
ADI | AMAT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 76 | 19 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 8 | 17 | |
SMR RATING 1..100 | 77 | 24 | |
PRICE GROWTH RATING 1..100 | 7 | 5 | |
P/E GROWTH RATING 1..100 | 42 | 12 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
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 (67) in the Semiconductors industry is in the same range as AMAT (72) 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 (8) in the Semiconductors industry is in the same range as AMAT (17) in the Electronic Production Equipment industry. This means that ADI’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's SMR Rating (24) in the Electronic Production Equipment industry is somewhat better than the same rating for ADI (77) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than ADI’s over the last 12 months.
AMAT's Price Growth Rating (5) in the Electronic Production Equipment industry is in the same range as ADI (7) in the Semiconductors industry. This means that AMAT’s stock grew similarly to ADI’s over the last 12 months.
AMAT's P/E Growth Rating (12) in the Electronic Production Equipment industry is in the same range as ADI (42) in the Semiconductors industry. This means that AMAT’s stock grew similarly to ADI’s over the last 12 months.
| ADI | AMAT | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 52% | 2 days ago 67% |
| Stochastic ODDS (%) | 2 days ago 71% | 2 days ago 69% |
| Momentum ODDS (%) | N/A | 2 days ago 73% |
| MACD ODDS (%) | 2 days ago 62% | 2 days ago 75% |
| TrendWeek ODDS (%) | 2 days ago 61% | 2 days ago 75% |
| TrendMonth ODDS (%) | 2 days ago 60% | 2 days ago 76% |
| Advances ODDS (%) | 6 days ago 61% | 3 days ago 75% |
| Declines ODDS (%) | 2 days ago 55% | 19 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 51% | 2 days ago 67% |
| Aroon ODDS (%) | 2 days ago 56% | 2 days ago 75% |
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ADI and
Correlation & Price change
A.I.dvisor indicates that over the last year, ADI has been closely correlated with LRCX. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADI jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To ADI | 1D Price Change % | ||
|---|---|---|---|---|
| ADI | 100% | -2.18% | ||
| LRCX - ADI | 79% Closely correlated | -4.82% | ||
| KLAC - ADI | 79% Closely correlated | -4.68% | ||
| ENTG - ADI | 78% Closely correlated | -4.44% | ||
| KLIC - ADI | 77% Closely correlated | -1.97% | ||
| AMAT - ADI | 75% Closely correlated | -0.89% | ||
More | ||||
AMAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMAT has been closely correlated with LRCX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if AMAT jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To AMAT | 1D Price Change % | ||
|---|---|---|---|---|
| AMAT | 100% | -0.89% | ||
| LRCX - AMAT | 86% Closely correlated | -4.82% | ||
| KLAC - AMAT | 84% Closely correlated | -4.68% | ||
| ASML - AMAT | 76% Closely correlated | -5.22% | ||
| QCOM - AMAT | 75% Closely correlated | +0.70% | ||
| RMBS - AMAT | 75% Closely correlated | -2.70% | ||
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