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AMAT vs AMD
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Advanced Micro Devices (AMD) Stock Comparison
Key Takeaways
- AMAT is a semiconductor-equipment supplier benefiting from AI-driven fab spending, with margins recently reaching a 25-year high.
- AMD is a chip designer riding explosive data-center growth, but its shares carry a much richer valuation and higher volatility.
- AMD has delivered faster revenue growth and momentum in recent weeks, while AMAT offers comparatively steadier execution and a rising dividend.
- Both names are exposed to AI infrastructure, but AMAT is a "picks and shovels" play, whereas AMD competes directly with Nvidia in AI accelerators.
- The two stocks occupy different risk profiles: AMAT is more cyclical and capital-spending dependent, while AMD faces execution and valuation risk.
Introduction
Investors tracking the artificial intelligence (AI) build-out frequently encounter two very different semiconductor names: Applied Materials (AMAT), the world's leading supplier of chip-manufacturing equipment, and Advanced Micro Devices (AMD), a designer of central processing units (CPUs) and AI accelerators. This stock comparison is relevant for both growth-oriented traders and longer-term investors weighing relative performance and market positioning. While both companies are anchored to the same AI theme, they sit at opposite ends of the semiconductor value chain, producing distinct risk and return profiles. Understanding how each responds to capital spending, competitive pressure, and valuation shifts can clarify which stock better suits a given strategy.
AMAT Overview and Recent Performance
Applied Materials supplies the sophisticated machinery and materials-engineering processes used to fabricate advanced chips, making it a key beneficiary of rising wafer fab equipment (WFE) spending. Its business is divided into Semiconductor Systems, Applied Global Services (AGS), and a smaller display and "other" category. In recent weeks, sentiment has been supported by firm AI-related demand and disciplined execution: the company reported its highest gross margin in more than 25 years, with non-GAAP (adjusted) gross margin around 50% and operating margin expanding, while AGS revenue grew at a double-digit rate as customers leaned on services and AI-powered maintenance tools. Management has also signaled confidence through a 15% dividend increase, marking nine consecutive years of growth, and through an agreement to acquire the NEXX advanced-packaging business. Recent market activity has lifted AMAT shares sharply year to date, though the stock still trades below its 52-week high, reflecting periodic pullbacks tied to concerns about the pace of AI capital spending.
AMD Overview and Recent Performance
Advanced Micro Devices designs high-performance CPUs, graphics processing units (GPUs), and AI accelerators, competing most directly with Nvidia in the data-center accelerator market. Its data-center segment has become the primary driver of results, with revenue accelerating at a triple-digit pace in the most recent quarter and now representing the majority of total sales. In recent weeks, AMD has been one of the market's standout performers, with shares more than doubling year to date and roughly tripling over the past 12 months on optimism that it is becoming a credible second source for AI computing. Momentum has been fueled by large-scale deals, including a multi-gigawatt agreement with Meta and a partnership with OpenAI, plus the planned launch of its Helios rack-scale system. However, the stock has also shown notable volatility: a strong earnings report lifted shares in after-hours trading, while a subsequent quarter saw a sell-off as the company's forward guidance came in below the most bullish analyst estimates.
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Head-to-Head Comparison
The clearest contrast between AMAT and AMD lies in their business models. AMAT is a capital-equipment supplier whose revenue depends on chipmakers' willingness to expand manufacturing capacity, giving it broad exposure across foundry, logic, and memory customers. AMD, by contrast, sells finished processors and accelerators directly into the data-center, client, gaming, and embedded markets, putting it in direct competition with Nvidia and Intel. On growth, AMD has posted the faster revenue acceleration, driven by triple-digit data-center gains, while AMAT has generated steadier, margin-led expansion. Risk profiles differ accordingly: AMAT is sensitive to cyclical swings in fab investment and geographic concentration in Asia, whereas AMD carries execution and valuation risk, trading at a premium multiple that leaves less room for disappointment. In terms of relative performance and momentum, AMD has been the more aggressive mover, while AMAT offers a comparatively balanced mix of growth, profitability, and shareholder returns.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely assign different appeal to each stock depending on the strategy being evaluated. For trend consistency and momentum, AMD has shown the stronger relative performance and clearer growth catalysts in recent weeks, which could favor trend-following and momentum-oriented signals. For stability, margin quality, and lower valuation sensitivity, AMAT may register as the more balanced candidate, given its durable profitability and recurring services revenue. Overall, an AI model weighting recent momentum and growth acceleration would probably lean toward AMD, while one emphasizing valuation discipline and steadier positioning might favor AMAT. Any single verdict remains probabilistic rather than definitive, reflecting the distinct risk profiles of two businesses that serve the same AI-driven market from different angles.
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 AMAT is a Buy and AMD is a StrongBuy.
AMAT | AMD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 37 | 41 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 39 | 6 | |
SMR RATING 1..100 | 25 | 69 | |
PRICE GROWTH RATING 1..100 | 37 | 5 | |
P/E GROWTH RATING 1..100 | 9 | 11 | |
SEASONALITY SCORE 1..100 | 85 | 85 |
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.
AMAT's Valuation (71) in the Electronic Production Equipment industry is in the same range as AMD (86) in the Semiconductors industry. This means that AMAT’s stock grew similarly to AMD’s over the last 12 months.
AMD's Profit vs Risk Rating (6) in the Semiconductors industry is somewhat better than the same rating for AMAT (39) in the Electronic Production Equipment industry. This means that AMD’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 AMD (69) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than AMD’s over the last 12 months.
AMD's Price Growth Rating (5) in the Semiconductors industry is in the same range as AMAT (37) in the Electronic Production Equipment industry. This means that AMD’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (9) in the Electronic Production Equipment industry is in the same range as AMD (11) in the Semiconductors industry. This means that AMAT’s stock grew similarly to AMD’s over the last 12 months.
| AMAT | AMD | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 65% | 1 day ago 71% |
| Stochastic ODDS (%) | 1 day ago 75% | 1 day ago 70% |
| Momentum ODDS (%) | 1 day ago 77% | 1 day ago 80% |
| MACD ODDS (%) | 1 day ago 89% | 2 days ago 76% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 78% |
| TrendMonth ODDS (%) | 1 day ago 79% | 1 day ago 77% |
| Advances ODDS (%) | 4 days ago 79% | 7 days ago 76% |
| Declines ODDS (%) | 1 day ago 66% | 1 day ago 76% |
| BollingerBands ODDS (%) | N/A | 1 day ago 82% |
| Aroon ODDS (%) | 1 day ago 63% | 1 day ago 79% |
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).
AMAT’s FA Score shows that 2 FA rating(s) are green while AMD’s FA Score has 3 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- AMD’s FA Score: 3 green, 2 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.
AMAT’s TA Score shows that 5 TA indicator(s) are bullish while AMD’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 4 bearish.
- AMD’s TA Score: 5 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -3.73% price change this week, while AMD (@Semiconductors) price change was +0.80% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -6.13%. For the same industry, the average monthly price growth was +0.72%, and the average quarterly price growth was +2.70%.
The average weekly price growth across all stocks in the @Semiconductors industry was -2.54%. For the same industry, the average monthly price growth was +3.74%, and the average quarterly price growth was +39.68%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
AMD is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Electronic Production Equipment (-6.13% 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.
@Semiconductors (-2.54% 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.
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