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AMAT vs FORM
Which Stock Would AI Choose? Applied Materials (AMAT) vs. FormFactor (FORM) Stock Comparison
Key Takeaways
- AMAT is a diversified semiconductor-equipment giant with a market capitalization of roughly $428 billion, while FORM is a test-and-measurement specialist valued near $11 billion.
- Both stocks have rallied sharply on artificial-intelligence (AI) infrastructure spending, with each up more than 100% year to date in recent market activity.
- AMAT generates scale and broad exposure across foundry, logic, and memory, whereas FORM is more concentrated in high-bandwidth memory (HBM) probe cards and advanced packaging.
- FORM is delivering faster top-line momentum, with recent quarterly revenue up more than 30% year over year and sharply expanding margins.
- AMAT offers a modest but growing dividend, while FORM carries greater customer-concentration and valuation-premium risk.
- Both names remain sensitive to the pace of AI-related capital expenditures (capex), a shared cyclical risk factor.
Introduction
Investors tracking the semiconductor value chain frequently compare established equipment leaders with faster-growing niche suppliers. Applied Materials (AMAT) and FormFactor (FORM) sit at different points in that ecosystem, yet both are leveraged to the same AI-driven buildout of advanced chips. This stock comparison is relevant to traders and investors weighing relative performance, market positioning, and growth profiles across large-cap and mid-cap semiconductor names. Understanding how each company monetizes AI demand, manages cyclicality, and trades on valuation can help readers frame the risk-reward trade-off between scale and growth.
AMAT Overview and Recent Performance
Applied Materials is the world's largest supplier of materials-engineering and wafer-fabrication equipment, serving foundry, logic, and memory chipmakers. Its broad product portfolio spans deposition, etch, planarization, metrology, and inspection tools, giving it diversified exposure across the semiconductor industry. In recent weeks, shares have traded near the $540 level and have gained more than 100% year to date, supported by robust AI-related demand for leading-edge and advanced-packaging equipment.
Recent catalysts have reinforced this momentum. The company reported strong quarterly results, guided third-quarter revenue toward roughly $8.95 billion, and raised its quarterly dividend by 15% to $0.53 per share—marking nine consecutive years of increases. Applied Materials also expanded its strategic partnership with BE Semiconductor Industries (Besi) at its EPIC Center to accelerate advanced-packaging and interconnect technologies for AI systems. Analysts remain broadly constructive, with a consensus Buy rating and a forward price-to-earnings (P/E) ratio near 41, reflecting elevated expectations.
FORM Overview and Recent Performance
FormFactor provides test-and-measurement technologies across the semiconductor lifecycle, with its core business in high-performance probe cards used to test chips during production. The company has emerged as a direct beneficiary of the HBM (high-bandwidth memory) boom and rising test intensity tied to advanced packaging, chiplets, and AI accelerators. Shares have climbed to roughly $147–$150 in recent sessions, more than doubling year to date.
Recent financial results have been notably strong. FORM reported quarterly revenue of $258.2 million, up about 32% year over year, with non-GAAP (adjusted) earnings per share of $0.82 that exceeded consensus estimates by a wide margin. Record DRAM (dynamic random-access memory) revenue and expanding gross margins—driven by higher volumes and operational efficiency—have underpinned the rally. Analysts at Deutsche Bank and Craig-Hallum have issued or upgraded ratings to Buy, citing rising chip-testing intensity. However, FORM's revenue remains concentrated, with SK Hynix representing roughly 30% of sales and NVIDIA about 10%, adding customer-specific risk.
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Head-to-Head Comparison
The clearest contrast between these two stocks is scale versus specialization. AMAT is a diversified equipment leader with tens of billions in annual revenue and a $428 billion market capitalization, providing ballast across multiple end markets. FORM, at roughly $11 billion, is a focused probe-card and test-systems player whose fortunes are tightly linked to memory and advanced-packaging test intensity. This gives FORM faster growth—roughly 30% year over year—but also higher customer concentration and narrower diversification.
Growth drivers differ meaningfully. AMAT benefits from broad wafer-fabrication-equipment demand, panel-level packaging, and expanding service revenue, while FORM is levered to HBM probe cards, co-packaged optics (CPO), and rising chip complexity. On valuation, AMAT trades near a 41x forward P/E with a modest dividend, whereas FORM trades at a premium multiple with no payout, reflecting its higher growth expectations but less downside cushion. Both face the shared risk that any slowdown in AI capex could compress sentiment and multiples.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor AMAT for its relative stability and positioning, while recognizing FORM as the stronger near-term momentum story. FORM's accelerating revenue growth, expanding margins, and consistent upward estimate revisions suggest more powerful trend momentum, which AI models often weight heavily. At the same time, AMAT's scale, diversification, dividend support, and broader analyst conviction may offer more trend consistency and lower single-customer risk. A probabilistic view would therefore lean toward FORM for momentum-oriented signals and AMAT for stability-oriented positioning, with the final weighting depending on a model's risk preferences and timeframe.
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 StrongBuy and FORM is a StrongBuy.
AMAT in downward trend: price dove below 50-day moving average on October 13, 2026
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. In 28 of 35 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 80%.
Technical Analysis (Indicators)
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 66 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 76%.
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 29 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.
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 11 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 73%.
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 5 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 7 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 18 (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 Price Growth Rating for this company is 57 (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 Profit vs. Risk Rating rating for this company is 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Valuation Rating of 75 (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 (11.631) is normal, around the industry mean (6.371). P/E Ratio (32.156) is within average values for comparable stocks, (86.229). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.006) 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.
FORM in upward trend: price may jump up because it broke its lower Bollinger Band on October 14, 2026
FORM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 33 of 34 cases where FORM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for FORM's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 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 +14.00% 3-day Advance, the price is estimated to grow further. Considering data from situations where FORM advanced for three days, in 238 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
The Aroon Indicator entered an Uptrend today. In 190 of 229 cases where FORM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 83%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FORM as a result. In 70 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for FORM turned negative on October 12, 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 34 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 67%.
FORM moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FORM crossed bearishly below the 50-day moving average on October 22, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 20 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 60%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FORM 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 70%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. FORM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 57 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to 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 67 (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 81 (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 (6.680) is normal, around the industry mean (6.371). P/E Ratio (64.209) is within average values for comparable stocks, (86.229). FORM's Projected Growth (PEG Ratio) (1.500) is slightly higher than the industry average of (0.801). Dividend Yield (0.000) settles around the average of (0.008) among similar stocks. P/S Ratio (9.200) is also within normal values, averaging (27.897).
AMAT | FORM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 67 | 65 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 75 Overvalued | 81 Overvalued | |
PROFIT vs RISK RATING 1..100 | 58 | 57 | |
SMR RATING 1..100 | 25 | 67 | |
PRICE GROWTH RATING 1..100 | 57 | 41 | |
P/E GROWTH RATING 1..100 | 18 | 59 | |
SEASONALITY SCORE 1..100 | 90 | 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 (75) in the Electronic Production Equipment industry is in the same range as FORM (81). This means that AMAT’s stock grew similarly to FORM’s over the last 12 months.
FORM's Profit vs Risk Rating (57) in the Electronic Production Equipment industry is in the same range as AMAT (58). This means that FORM’s stock grew similarly to 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 FORM (67). This means that AMAT’s stock grew somewhat faster than FORM’s over the last 12 months.
FORM's Price Growth Rating (41) in the Electronic Production Equipment industry is in the same range as AMAT (57). This means that FORM’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (18) in the Electronic Production Equipment industry is somewhat better than the same rating for FORM (59). This means that AMAT’s stock grew somewhat faster than FORM’s over the last 12 months.
| AMAT | FORM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 86% | 1 day ago 84% |
| Stochastic ODDS (%) | 1 day ago 78% | 1 day ago 88% |
| Momentum ODDS (%) | 1 day ago 76% | 1 day ago 77% |
| MACD ODDS (%) | 1 day ago 64% | 1 day ago 67% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 72% |
| TrendMonth ODDS (%) | 1 day ago 70% | 1 day ago 75% |
| Advances ODDS (%) | 18 days ago 79% | 23 days ago 79% |
| Declines ODDS (%) | 7 days ago 66% | 7 days ago 70% |
| BollingerBands ODDS (%) | 1 day ago 80% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 62% | 1 day ago 83% |
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 FORM’s FA Score has 0 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- FORM’s FA Score: 0 green, 5 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 FORM’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 6 bearish.
- FORM’s TA Score: 5 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -12.66% price change this week, while FORM (@Electronic Production Equipment) price change was -16.15% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -10.98%. For the same industry, the average monthly price growth was -23.65%, and the average quarterly price growth was -33.54%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
FORM is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Electronic Production Equipment (-10.98% 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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