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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 sees MACD Histogram crosses below signal line
AMAT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 13, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In 33 of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 73%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AMAT moved out of overbought territory on October 06, 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 46 similar instances where the indicator moved out of overbought territory. In 29 of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at 63%.
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 61 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 70%.
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.
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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for AMAT crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
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 9 (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 40 (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 46 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Valuation Rating of 71 (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 (15.083) is normal, around the industry mean (8.078). P/E Ratio (41.998) is within average values for comparable stocks, (161.623). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 85 (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.
Momentum Indicator for KLAC turns negative, indicating new downward trend
KLAC saw its Momentum Indicator move below the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 100 similar instances where the indicator turned negative. In 73 of the 100 cases, the stock moved further down in the following days. The odds of a decline are at 73%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for KLAC moved out of overbought territory on October 06, 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 55 similar instances where the indicator moved out of overbought territory. In 37 of the 55 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Moving Average Convergence Divergence Histogram (MACD) for KLAC 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 48 similar instances when the indicator turned negative. In 27 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 56%.
KLAC 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.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KLAC 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 59%.
The Aroon Indicator for KLAC entered a downward trend on September 24, 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for KLAC crossed bullishly above the 50-day moving average on October 01, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
Following a +6.14% 3-day Advance, the price is estimated to grow further. Considering data from situations where KLAC advanced for three days, in 265 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
KLAC 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 13 (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 15 (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 40 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. KLAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (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.
The Tickeron Valuation Rating of 88 (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: KLAC's P/B Ratio (38.911) is very high in comparison to the industry average of (8.078). P/E Ratio (51.686) is within average values for comparable stocks, (161.623). KLAC's Projected Growth (PEG Ratio) (1.809) is slightly higher than the industry average of (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (16.260) is also within normal values, averaging (27.897).
AMAT | KLAC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 86 | 85 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 46 | 40 | |
SMR RATING 1..100 | 25 | 15 | |
PRICE GROWTH RATING 1..100 | 40 | 42 | |
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 (40) in the Electronic Production Equipment industry is in the same range as AMAT (46). 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 (40) in the Electronic Production Equipment industry is in the same range as KLAC (42). 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 63% | 1 day ago 67% |
| Stochastic ODDS (%) | 1 day ago 78% | 1 day ago 86% |
| Momentum ODDS (%) | 1 day ago 70% | 1 day ago 73% |
| MACD ODDS (%) | 1 day ago 73% | 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 (%) | 10 days ago 79% | 13 days ago 77% |
| Declines ODDS (%) | 1 day ago 66% | 1 day ago 59% |
| BollingerBands ODDS (%) | 1 day ago 80% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 59% | 1 day ago 64% |
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 4 TA indicator(s) are bullish while KLAC’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 6 bearish.
- KLAC’s TA Score: 4 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -14.22% price change this week, while KLAC (@Electronic Production Equipment) price change was -9.16% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -14.55%. For the same industry, the average monthly price growth was -1.45%, and the average quarterly price growth was -14.76%.
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 (-14.55% 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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