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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 Buy and FORM is a Buy.
AMAT | FORM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 77 Overvalued | |
PROFIT vs RISK RATING 1..100 | 39 | 37 | |
SMR RATING 1..100 | 25 | 67 | |
PRICE GROWTH RATING 1..100 | 38 | 35 | |
P/E GROWTH RATING 1..100 | 9 | 13 | |
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 (71) in the Electronic Production Equipment industry is in the same range as FORM (77). This means that AMAT’s stock grew similarly to FORM’s over the last 12 months.
FORM's Profit vs Risk Rating (37) in the Electronic Production Equipment industry is in the same range as AMAT (39). 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 (35) in the Electronic Production Equipment industry is in the same range as AMAT (38). This means that FORM’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 FORM (13). This means that AMAT’s stock grew similarly to FORM’s over the last 12 months.
| AMAT | FORM | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 67% | 3 days ago 78% |
| Stochastic ODDS (%) | 3 days ago 70% | 3 days ago 75% |
| Momentum ODDS (%) | 3 days ago 73% | 4 days ago 81% |
| MACD ODDS (%) | 3 days ago 82% | 3 days ago 74% |
| TrendWeek ODDS (%) | 3 days ago 67% | 3 days ago 72% |
| TrendMonth ODDS (%) | 3 days ago 79% | 3 days ago 83% |
| Advances ODDS (%) | 7 days ago 79% | 12 days ago 79% |
| Declines ODDS (%) | 3 days ago 66% | 4 days ago 70% |
| BollingerBands ODDS (%) | N/A | 3 days ago 79% |
| Aroon ODDS (%) | 3 days ago 61% | 3 days 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 1 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- FORM’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 5 TA indicator(s) are bullish while FORM’s TA Score has 6 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 4 bearish.
- FORM’s TA Score: 6 bullish, 4 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -6.11% price change this week, while FORM (@Electronic Production Equipment) price change was -6.36% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -8.03%. For the same industry, the average monthly price growth was +1.04%, and the average quarterly price growth was +3.25%.
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 (-8.03% 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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FORM and
Correlation & Price change
A.I.dvisor indicates that over the last year, FORM has been closely correlated with COHU. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if FORM jumps, then COHU could also see price increases.
| Ticker / NAME | Correlation To FORM | 1D Price Change % | ||
|---|---|---|---|---|
| FORM | 100% | +1.85% | ||
| COHU - FORM | 76% Closely correlated | -0.26% | ||
| AMAT - FORM | 74% Closely correlated | -0.50% | ||
| RMBS - FORM | 74% Closely correlated | -0.92% | ||
| NVMI - FORM | 74% Closely correlated | -0.45% | ||
| SLAB - FORM | 73% Closely correlated | +0.13% | ||
More | ||||