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AMAT vs AMD
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Advanced Micro Devices (AMD) Stock Comparison
Key Takeaways
- Different roles in the AI boom: AMAT supplies the equipment that builds chips, while AMD designs the chips themselves, giving each a distinct risk-and-reward profile.
- Growth vs. value: AMD is growing revenue much faster but trades at a far higher valuation; AMAT offers a lower multiple, a dividend, and wider margins, but more cyclical demand.
- Momentum diverged: AMD has outperformed over the past year, while AMAT has de-rated sharply in recent weeks despite record results, partly on peer-driven sentiment.
- Earnings catalysts are near: AMD reports in early November and AMAT in mid-November, making the coming weeks pivotal for both relative performance narratives.
- For more detail on each company's developments, visit the AMAT Major News and AMAT Today's Price Move pages, as well as the AMD Major News and AMD Today's Price Move pages.
- To see how automated strategies are positioning across the market, explore the curated Trending AI Robots section.
Introduction
Applied Materials (AMAT) and Advanced Micro Devices (AMD) sit at opposite ends of the same semiconductor supply chain, yet both are closely tied to the artificial-intelligence spending cycle. AMAT builds the wafer fabrication equipment (WFE) that manufacturers use to produce chips, while AMD designs central processing units (CPUs), graphics processing units (GPUs), and AI accelerators sold into data centers, PCs, and embedded systems. This stock comparison is relevant to investors weighing a cyclical equipment supplier with strong cash flow against a high-growth chip designer carrying a premium valuation. Comparing their relative performance, growth drivers, and market positioning helps clarify how two different ways of gaining exposure to the same industry currently stack up.
AMAT Overview and Recent Performance
Applied Materials is the world's largest maker of semiconductor manufacturing equipment, with its Semiconductor Systems segment generating roughly three-quarters of revenue, complemented by Applied Global Services. The company has reported record results in recent quarters, with revenue climbing about 25% year over year in its most recent fiscal quarter and operating margins expanding into the low-to-mid 30% range. Management has pointed to longer-term customer commitments and rolling eight-quarter forecasts as evidence of improved demand visibility, driven by leading-edge logic, dynamic random-access memory (DRAM), and advanced packaging for AI chips.
Despite this fundamental strength, the stock has been volatile in recent market activity. AMAT pulled back after a peer's cautious commentary on near-term supply-chain constraints, even though that same peer raised its longer-term wafer fab equipment outlook. The result has been a meaningful de-rating: AMAT's forward price-to-earnings (P/E) multiple has compressed from roughly 49 times to the low-20s, reflecting investor anxiety about the timing of equipment deliveries rather than a collapse in demand. Broader references to its 52-week range underscore how far the stock has swung as sentiment around AI capital spending has shifted.
AMD Overview and Recent Performance
Advanced Micro Devices designs high-performance CPUs, GPUs, and AI accelerators, competing with Nvidia in data-center accelerators and with Intel in processors. Its Data Center segment has become the dominant growth engine, with revenue roughly doubling year over year in the most recent quarter to a record level and now representing about 58% of total sales. Management has guided for continued strong growth, supported by gigawatt-scale GPU commitments from major AI customers and the ramp of its Helios rack-scale AI platform.
AMD's stock has been a standout performer over the trailing year, rising well into the triple digits in percentage terms as investors rewarded its accelerating data-center story. However, that run has also brought elevated valuations, with the stock trading at a high trailing P/E and a price-to-sales ratio far above the broader market. In recent weeks, AMD shares have pulled back sharply as renewed questions about the pace and durability of AI infrastructure spending triggered sector-wide selling. The stock's beta, above two, indicates significantly higher volatility than the overall market, making it more sensitive to shifts in AI sentiment.
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Head-to-Head Comparison
The clearest contrast is structural. AMAT is a capital-equipment supplier whose fortunes track industry-wide wafer fab equipment spending; it earns high margins, generates substantial free cash flow, pays a dividend, and trades at a comparatively modest forward P/E. Its risk is cyclicality — equipment orders can be pushed out by supply-chain or clean-room constraints, which is exactly the concern that has weighed on the stock recently.
AMD, by contrast, is a product company whose revenue can scale rapidly with the adoption of its accelerators and CPUs, but whose earnings are still rebuilding toward historical peak margins. Its growth rate is materially higher than AMAT's, yet investors pay a substantial premium for that growth. AMD also carries higher execution and sentiment risk: its valuation depends on the 2027 ramp of new AI platforms, and its shares have shown much larger single-session swings. In sector-exposure terms, both are AI-sensitive, but AMAT offers a more diversified, cash-generative profile while AMD offers more concentrated, higher-beta upside.
Tickeron AI Verdict
Weighing trend consistency, stability, valuation, and near-term catalysts, Tickeron's AI would likely lean toward AMAT on a relative basis in the current environment. Its lower valuation, wider margins, positive free cash flow, and dividend provide a steadier fundamental floor, even as near-term delivery timing introduces noise. AMD presents a stronger growth trajectory but also greater volatility and a higher execution bar tied to premium expectations. This assessment reflects probabilistic positioning rather than a definitive forecast, and could shift quickly as both companies report earnings in the coming weeks.
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 Buy.
AMAT in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 14, 2026
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 30 of 35 cases where AMAT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where AMAT's RSI Oscillator exited the oversold zone, 24 of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 83%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 45 of 56 cases where AMAT'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 80%.
Following a +6.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 253 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In 64 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
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 36 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
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 12 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 80%.
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 October 30, 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.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 22 (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 54 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 60 (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 (12.080) is normal, around the industry mean (6.452). P/E Ratio (33.398) is within average values for comparable stocks, (89.445). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.005) settles around the average of (0.009) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
AMD in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 14, 2026
AMD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 31 of 35 cases where AMD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +8.88% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in 242 of 317 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
The Aroon Indicator entered an Uptrend today. In 198 of 243 cases where AMD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Bearish Trend Analysis
The 10-day RSI Indicator for AMD moved out of overbought territory on October 08, 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 40 similar instances where the indicator moved out of overbought territory. In 29 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 73%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 40 of 56 cases where AMD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 71%.
The Momentum Indicator moved below the 0 level on October 30, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AMD as a result. In 63 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
The Moving Average Convergence Divergence Histogram (MACD) for AMD turned negative on October 09, 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 44 similar instances when the indicator turned negative. In 34 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
AMD moved below its 50-day moving average on October 30, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMD crossed bearishly below the 50-day moving average on October 27, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 14 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 90%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD 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 76%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 11 (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. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 SMR rating for this company is 70 (best 1 - 100 worst), indicating slightly better than average sales and a considerably 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 Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly 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 (12.259) is normal, around the industry mean (6.106). P/E Ratio (127.797) is within average values for comparable stocks, (17.186). Projected Growth (PEG Ratio) (0.619) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (20.450) is also within normal values, averaging (46.468).
AMAT | AMD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 54 | 11 | |
SMR RATING 1..100 | 25 | 70 | |
PRICE GROWTH RATING 1..100 | 60 | 41 | |
P/E GROWTH RATING 1..100 | 22 | 67 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
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 (76) in the Electronic Production Equipment industry is in the same range as AMD (89) 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 (11) in the Semiconductors industry is somewhat better than the same rating for AMAT (54) 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 (70) 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 (41) in the Semiconductors industry is in the same range as AMAT (60) 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 (22) in the Electronic Production Equipment industry is somewhat better than the same rating for AMD (67) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than AMD’s over the last 12 months.
| AMAT | AMD | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 83% | 3 days ago 73% |
| Stochastic ODDS (%) | 3 days ago 80% | 3 days ago 71% |
| Momentum ODDS (%) | 3 days ago 74% | 3 days ago 80% |
| MACD ODDS (%) | 3 days ago 80% | 3 days ago 77% |
| TrendWeek ODDS (%) | 3 days ago 77% | 3 days ago 79% |
| TrendMonth ODDS (%) | 3 days ago 70% | 3 days ago 79% |
| Advances ODDS (%) | 4 days ago 80% | 5 days ago 76% |
| Declines ODDS (%) | 17 days ago 66% | 3 days ago 76% |
| BollingerBands ODDS (%) | 3 days ago 86% | 3 days ago 89% |
| Aroon ODDS (%) | 3 days ago 71% | 3 days ago 81% |
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 1 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- AMD’s FA Score: 1 green, 4 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 4 TA indicator(s) are bullish while AMD’s TA Score has 3 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 6 bearish.
- AMD’s TA Score: 3 bullish, 7 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +3.41% price change this week, while AMD (@Semiconductors) price change was -2.32% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.42%. For the same industry, the average monthly price growth was -24.06%, and the average quarterly price growth was -28.86%.
The average weekly price growth across all stocks in the @Semiconductors industry was -0.34%. For the same industry, the average monthly price growth was -18.87%, and the average quarterly price growth was -16.09%.
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 (-0.42% 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 (-0.34% 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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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 91% 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% | -7.49% | ||
| LRCX - AMAT | 91% Closely correlated | -6.01% | ||
| KLAC - AMAT | 88% Closely correlated | -5.69% | ||
| ONTO - AMAT | 84% Closely correlated | -9.16% | ||
| ASML - AMAT | 82% Closely correlated | -6.55% | ||
| NVMI - AMAT | 81% Closely correlated | -6.68% | ||
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