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AMAT vs KLAC
Which Stock Would AI Choose? Applied Materials (AMAT) vs. KLA Corporation (KLAC) Stock Comparison
Key Takeaways
- Different roles in the chip ecosystem: AMAT is a materials-engineering and deposition leader, while KLAC dominates process control, inspection, and yield management.
- Momentum favors AMAT: AMAT shares have more than doubled this year, while KLAC has recently pulled back roughly 9% in a month on margin and execution concerns.
- Margins favor KLAC: KLAC posts gross margins around 62%, well above AMAT's roughly 50%, though both carry premium valuations.
- Shared AI tailwind: Both companies are leveraged to artificial intelligence (AI) infrastructure, high-bandwidth memory (HBM), and advanced packaging growth.
- Risk profiles differ: KLAC has heavier China revenue exposure (about 30% of recent fiscal-year sales) and faces export-control and tariff sensitivity.
Introduction
Applied Materials and KLA Corporation are two of the most important suppliers to the global semiconductor manufacturing industry, yet they play distinctly different roles in the production line. Applied Materials provides the materials-engineering and deposition systems used to build chips, while KLA supplies the inspection and metrology tools that ensure those chips are manufactured correctly. This stock comparison is relevant to investors and traders who want to understand how relative performance, market positioning, and AI-driven demand are shaping two industry leaders that often move together but are not interchangeable.
AMAT Overview and Recent Performance
Applied Materials (AMAT) is the world's largest supplier of semiconductor fabrication equipment, offering a broad portfolio spanning deposition, etch, materials engineering, and related services. In recent weeks, the stock has traded near elevated levels after a powerful rally that saw shares more than double over the past year. The company reported record fiscal third-quarter revenue of roughly $9.12 billion, up about 25% year over year, with gross margin near 50%.
Sentiment has been supported by strong AI-linked demand across leading-edge logic, DRAM, and advanced packaging, as well as the launch of six new chipmaking systems. Applied Materials has also expanded its $5 billion EPIC Center initiative, announcing collaborations with Intel, Besi, and KIOXIA focused on next-generation transistors, interconnects, and packaging. Its Applied Global Services (AGS) business reached a record $1.78 billion in quarterly revenue, reflecting a growing recurring revenue stream. The main point of debate is valuation, with the stock trading well above typical industry price-to-sales multiples.
KLAC Overview and Recent Performance
KLA Corporation (KLAC) is the leading provider of process control and yield-management systems, including wafer inspection and metrology tools that semiconductor makers rely on to detect defects. The company completed a ten-for-one stock split in mid-2026 and reported record June-quarter revenue of about $3.66 billion, up 15% year over year, with gross margin near 62%.
Despite strong fundamentals, KLAC shares have underperformed in recent market activity, pulling back roughly 9% over the past month as investors weighed near-term margin pressure from higher memory-component costs and tariffs, along with execution risks tied to capacity expansion. The company raised its calendar 2026 outlook for the wafer fabrication equipment (WFE) market to the low-$150 billion range and expects advanced-packaging process-control revenue to grow more than 70%. Management has also outlined a 2030 target of roughly $26 billion in revenue, implying a compound annual growth rate of 13% to 17%. China exposure and geopolitical uncertainty remain key watchpoints.
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Head-to-Head Comparison
The clearest contrast between these two companies is their positioning within the semiconductor value chain. Applied Materials is a broad-based equipment and materials leader whose scale gives it exposure across many chipmaking steps and reduces dependence on any single technology cycle. KLA, by contrast, is a more focused franchise built on process control, where rising chip complexity tends to increase inspection and metrology intensity per wafer.
On profitability, KLA holds a structural edge, with gross margins near 62% compared with AMAT's roughly 50%. That efficiency supports KLA's higher forward earnings multiple, though both stocks trade at premiums to the broader sector. Growth drivers overlap significantly: both benefit from AI infrastructure spending, HBM adoption, and advanced packaging, but KLAC's momentum has cooled in recent weeks while AMAT's has remained stronger.
Risk profiles also diverge. KLA derives close to 30% of revenue from China, making it more sensitive to export controls and tariffs. Applied Materials carries its own China-related regulatory exposure but is comparatively more diversified across customers and product categories. Both are cyclical businesses tied to semiconductor capital spending.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor AMAT in the current environment, primarily because of its stronger and more consistent recent price trend and the breadth of its AI-linked catalysts across logic, memory, and advanced packaging. KLAC's superior margins and market leadership in process control give it a durable long-term profile, but its recent pullback and higher China concentration introduce near-term uncertainty. The verdict is probabilistic rather than definitive: trend consistency and momentum currently lean toward Applied Materials, while KLA may warrant closer attention if its margin concerns ease and relative momentum stabilizes.
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 Hold and KLAC is a Hold.
AMAT | KLAC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 85 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 44 | 39 | |
SMR RATING 1..100 | 25 | 15 | |
PRICE GROWTH RATING 1..100 | 38 | 40 | |
P/E GROWTH RATING 1..100 | 9 | 13 | |
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 KLAC (88). This means that AMAT’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's Profit vs Risk Rating (39) in the Electronic Production Equipment industry is in the same range as AMAT (44). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
KLAC's SMR Rating (15) in the Electronic Production Equipment industry is in the same range as AMAT (25). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's Price Growth Rating (38) in the Electronic Production Equipment industry is in the same range as KLAC (40). This means that AMAT’s stock grew similarly to KLAC’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 KLAC (13). This means that AMAT’s stock grew similarly to KLAC’s over the last 12 months.
| AMAT | KLAC | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 64% | 1 day ago 62% |
| Stochastic ODDS (%) | 1 day ago 75% | 1 day ago 88% |
| Momentum ODDS (%) | 1 day ago 71% | 1 day ago 68% |
| MACD ODDS (%) | 1 day ago 78% | 1 day ago 56% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 63% |
| TrendMonth ODDS (%) | 1 day ago 79% | 1 day ago 80% |
| Advances ODDS (%) | 9 days ago 79% | 12 days ago 77% |
| Declines ODDS (%) | 1 day ago 66% | 1 day ago 59% |
| BollingerBands ODDS (%) | N/A | N/A |
| Aroon ODDS (%) | 1 day ago 57% | 1 day ago 62% |
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 KLAC’s FA Score has 2 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- KLAC’s FA Score: 2 green, 3 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 3 TA indicator(s) are bullish while KLAC’s TA Score has 3 bullish TA indicator(s).
- AMAT’s TA Score: 3 bullish, 6 bearish.
- KLAC’s TA Score: 3 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -12.45% price change this week, while KLAC (@Electronic Production Equipment) price change was -6.82% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -11.49%. For the same industry, the average monthly price growth was -4.15%, and the average quarterly price growth was -7.10%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
KLAC is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Electronic Production Equipment (-11.49% 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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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% | -6.69% | ||
| LRCX - AMAT | 91% Closely correlated | -2.73% | ||
| KLAC - AMAT | 87% Closely correlated | -3.22% | ||
| ONTO - AMAT | 84% Closely correlated | -3.72% | ||
| ASML - AMAT | 82% Closely correlated | -1.86% | ||
| NVMI - AMAT | 81% Closely correlated | +0.56% | ||
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