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AMAT vs KLAC
Which Stock Would AI Choose? Applied Materials (AMAT) vs. KLA Corporation (KLAC) Stock Comparison
Key Takeaways
- Two leaders, different niches: AMAT (Applied Materials) is the broad-based materials engineering and deposition giant, while KLAC (KLA Corporation) dominates process control, inspection, and metrology.
- Momentum favors KLAC: KLA has delivered stronger share-price gains over the past year, though both names have pulled back recently amid sector-wide concerns about the pace of AI (artificial intelligence) capital spending.
- Valuation contrasts sharply: AMAT trades at a lower forward earnings multiple, while KLAC commands a premium justified by industry-leading gross margins and a rapidly expanding backlog.
- Both ride the same secular tailwind: Rising demand for high-bandwidth memory (HBM), leading-edge logic, and advanced packaging is lifting wafer fabrication equipment (WFE) spending across the sector.
- Competitive overlap is emerging: AMAT is expanding into process control and inspection, directly targeting a market where KLAC is the entrenched leader.
- For deeper coverage of these companies, explore AMAT Major News, AMAT Today's Price Move, KLAC Major News, and KLAC Today's Price Move on dedicated pages.
- To see how automated systems are navigating this dynamic market, explore the Trending AI Robots section.
Introduction
Applied Materials and KLA Corporation are two of the most important suppliers in the semiconductor capital equipment industry, yet they occupy distinct positions within it. AMAT provides a wide array of deposition, etch, and materials engineering tools used throughout chip manufacturing, while KLAC specializes in the process control, inspection, and metrology systems that help chipmakers maximize yield. Because both companies are leveraged to the same AI-driven investment cycle, comparing their relative performance and market positioning offers a useful lens for investors weighing broad diversification against focused, high-margin exposure to semiconductor manufacturing.
AMAT Overview and Recent Performance
AMAT is the largest diversified semiconductor equipment maker by market capitalization. Its Semiconductor Systems segment spans deposition, etch, chemical mechanical planarization, and metrology, complemented by a growing Applied Global Services (AGS) business. Recent market activity has been volatile: after a powerful multi-year rally, the stock has retreated meaningfully from its peak, with a sharp pullback in recent weeks reflecting broader concerns about the sustainability of AI spending rather than company-specific deterioration.
Fundamentals remain robust. Management has reported record quarterly results, with Semiconductor Systems revenue rising roughly 27% year over year, and has guided toward continued strength in leading-edge logic, DRAM (dynamic random-access memory), and advanced packaging. The company also unveiled a $5 billion Equipment and Process Innovation and Commercialization (EPIC) center in Silicon Valley and signaled expectations that revenue could roughly double over the coming years. Notably, AMAT is expanding its process control and inspection portfolio, a segment management says is growing about 50% — a move that places it more directly in competition with KLA.
KLAC Overview and Recent Performance
KLAC is the clear leader in semiconductor process control, wafer inspection, and metrology — the tools that identify defects and measure critical dimensions to improve manufacturing yield. KLA recently completed a 10-for-1 stock split and has delivered record revenue, with its latest quarter up about 15% year over year. Its non-GAAP (non-Generally Accepted Accounting Principles) gross margin has reached the low-60% range, among the highest in the industry.
Recent share-price action has been mixed. Following a strong run, the stock has pulled back over the past month on concerns about near-term margins, component costs, tariffs, and elevated expectations. Still, the underlying demand picture is favorable: KLA raised its calendar 2026 outlook for the wafer equipment market, reported a backlog of roughly $12.6 billion (up about 60% year over year), and expects advanced packaging process-control revenue to grow more than 70% in 2026. The company commands a premium valuation relative to peers, reflecting both its profitability and its dominant market share.
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Head-to-Head Comparison
The core contrast between these two stocks is breadth versus depth. AMAT's diversified product line exposes it to nearly every step of chip fabrication, which can smooth out cyclical swings but also means it competes across many fronts. KLAC's concentrated focus on process control gives it commanding share, exceptional margins, and pricing power, but leaves it more sensitive to shifts in that specific niche — including AMAT's efforts to gain share there.
On growth drivers, both benefit from AI infrastructure buildout, HBM adoption, and advanced packaging, but KLAC's backlog growth and rising "process control intensity" provide particularly strong near-term visibility. On valuation, AMAT's lower forward earnings multiple reflects its broader exposure and lower margins, while KLAC's premium reflects its profitability and leadership. Risk factors are shared — China export controls, tariffs, supply-chain constraints, and the risk that AI capital spending moderates — but AMAT's larger scale and diversification may provide somewhat more resilience if spending slows. Market sentiment has favored KLAC's momentum over the past year, though recent weeks have tested both names equally.
Tickeron AI Verdict
Based on observable factors such as trend consistency, margin profile, backlog visibility, and relative positioning, Tickeron's AI would likely lean toward KLAC in the current environment. KLA's combination of industry-leading gross margins, a rapidly expanding backlog, and accelerating process control intensity suggests more durable earnings momentum, even at a premium valuation. However, AMAT's lower multiple, broader diversification, and aggressive push into high-growth inspection and process control give it a credible catalyst path of its own. The verdict is probabilistic rather than definitive: if AI-driven equipment spending sustains, both stocks are well positioned, but KLA's higher-quality earnings stream and stronger momentum tilt the near-term edge in its favor.
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 in upward trend: price expected to rise as it breaks 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 29 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 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator 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 is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
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 57 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 66%.
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 34 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
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 10 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 67%.
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 November 03, 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 Seasonality Score of 15 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 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 PE Growth Rating for this company is 28 (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 Profit vs. Risk Rating rating for this company is 55 (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 63 (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 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 (11.827) is normal, around the industry mean (6.389). P/E Ratio (32.699) is within average values for comparable stocks, (83.490). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
KLAC's RSI Indicator ascending out of oversold territory
The RSI Oscillator for KLAC moved out of oversold territory on October 27, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 12 similar instances when the indicator left oversold territory. In 11 of the 12 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 49 of 60 cases where KLAC'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 82%.
Following a +8.96% 3-day Advance, the price is estimated to grow further. Considering data from situations where KLAC advanced for three days, in 268 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
KLAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 KLAC as a result. In 62 of 100 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 62%.
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 49 similar instances when the indicator turned negative. In 30 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
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.
The 10-day moving average for KLAC 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 10 of 16 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 62%.
The 50-day moving average for KLAC moved below the 200-day moving average on October 27, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an 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 November 03, 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 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 PE Growth Rating for this company is 33 (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 Profit vs. Risk Rating rating for this company is 50 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued 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 Price Growth Rating for this company is 63 (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 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: KLAC's P/B Ratio (32.102) is very high in comparison to the industry average of (6.389). P/E Ratio (42.446) is within average values for comparable stocks, (83.490). KLAC's Projected Growth (PEG Ratio) (1.809) is slightly higher than the industry average of (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (16.260) is also within normal values, averaging (27.897).
AMAT | KLAC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 7 | 6 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 75 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 55 | 50 | |
SMR RATING 1..100 | 25 | 15 | |
PRICE GROWTH RATING 1..100 | 63 | 63 | |
P/E GROWTH RATING 1..100 | 28 | 33 | |
SEASONALITY SCORE 1..100 | 15 | 50 |
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 KLAC (89). This means that AMAT’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's Profit vs Risk Rating (50) in the Electronic Production Equipment industry is in the same range as AMAT (55). 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.
KLAC's Price Growth Rating (63) in the Electronic Production Equipment industry is in the same range as AMAT (63). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (28) in the Electronic Production Equipment industry is in the same range as KLAC (33). This means that AMAT’s stock grew similarly to KLAC’s over the last 12 months.
| AMAT | KLAC | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 83% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 75% | 1 day ago 82% |
| Momentum ODDS (%) | 1 day ago 66% | 1 day ago 62% |
| MACD ODDS (%) | 1 day ago 76% | 1 day ago 61% |
| TrendWeek ODDS (%) | 1 day ago 67% | 1 day ago 77% |
| TrendMonth ODDS (%) | 1 day ago 70% | 1 day ago 70% |
| Advances ODDS (%) | 6 days ago 80% | 6 days ago 78% |
| Declines ODDS (%) | 2 days ago 66% | 2 days ago 59% |
| BollingerBands ODDS (%) | 1 day ago 83% | 1 day ago 82% |
| Aroon ODDS (%) | 1 day ago 71% | 1 day ago 59% |
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, 7 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -3.54% price change this week, while KLAC (@Electronic Production Equipment) price change was +1.65% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -6.47%. For the same industry, the average monthly price growth was -27.76%, and the average quarterly price growth was -31.19%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
KLAC is expected to report earnings on Feb 04, 2027.
Industries' Descriptions
@Electronic Production Equipment (-6.47% 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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KLAC and
Correlation & Price change
A.I.dvisor indicates that over the last year, KLAC has been closely correlated with AMAT. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if KLAC jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To KLAC | 1D Price Change % | ||
|---|---|---|---|---|
| KLAC | 100% | +2.02% | ||
| AMAT - KLAC | 88% Closely correlated | +1.97% | ||
| LRCX - KLAC | 88% Closely correlated | +1.39% | ||
| NVMI - KLAC | 84% Closely correlated | -0.42% | ||
| ONTO - KLAC | 82% Closely correlated | +5.74% | ||
| ASML - KLAC | 81% Closely correlated | +1.70% | ||
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