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AMAT vs KLAC
Which Stock Would AI Choose? Applied Materials (AMAT) vs. KLA Corporation (KLAC) Stock Comparison
Key Takeaways
- Both AMAT and KLAC have delivered strong year-to-date gains, with AMAT at approximately 69% outperforming KLAC's 54% amid AI-driven semiconductor demand.
- AMAT boasts higher revenue ($28.2B) and market cap ($345B), while KLAC shows superior profitability with a 35.8% profit margin versus AMAT's 27.8%.
- Recent momentum favors AMAT with 11% five-day and 10% one-month returns, compared to KLAC's 9% and 6%, reflecting robust sector rallies.
- Analyst sentiment is bullish for both, with AMAT targets up to $517 and KLAC to $2,064, driven by AI infrastructure and advanced packaging growth.
- Both stocks exhibit high betas around 1.8, indicating elevated volatility tied to semiconductor cycles, with KLAC offering a small dividend yield of 0.49%.
Introduction
Applied Materials (AMAT) and KLA Corporation (KLAC) are leading providers of semiconductor manufacturing equipment, playing pivotal roles in the production of chips powering AI, data centers, and electronics. This stock comparison examines their recent performance, business models, and market positioning in the context of surging demand for advanced semiconductor processes. Traders seeking exposure to the semiconductor equipment sector and investors tracking AI-related growth will find insights into relative momentum, profitability, and risk factors, aiding informed decisions on stock comparison and market positioning.
AMAT Overview and Recent Performance
Applied Materials (AMAT), headquartered in Santa Clara, California, provides materials engineering solutions including deposition, etching, and metrology equipment for semiconductor fabrication. In recent market activity, AMAT shares have surged, posting 69% year-to-date and 181% one-year returns as of early May 2026, with five-day gains of 11% and one-month advances of 10%. This momentum stems from robust AI infrastructure demand boosting wafer fabrication equipment (WFE) spending, alongside bullish analyst updates like HSBC's $517 price target. Sentiment has strengthened on expectations of strong fiscal Q2 results, though high P/E ratio of 44.7 signals premium valuation amid China market share concerns.
KLAC Overview and Recent Performance
KLA Corporation (KLAC), based in Milpitas, California, specializes in process control and yield management solutions such as inspection tools and metrology systems for semiconductors. Recent weeks have seen KLAC shares rise 54% year-to-date and 168% over one year, with five-day performance at 9% and one-month at 6%. Key drivers include Q1 CY2026 earnings beats ($3.42B revenue, $9.40 EPS), advanced packaging growth toward $1B annually, and a 10-for-1 stock split with dividend hike. Positive analyst notes, like Citigroup's $2,064 target, reflect optimism in AI-related WFE exceeding $140B in 2026, despite a higher P/E of 52.9.
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Head-to-Head Comparison
Applied Materials (AMAT) and KLA Corporation (KLAC) both thrive in semiconductor equipment but differ in focus: AMAT emphasizes broad fabrication tools like deposition and etch, generating higher revenue ($28.2B vs. $13.1B) and cash reserves, while KLAC dominates process control with superior margins (35.8% vs. 27.8%) and ROE (100.7% vs. 38.9%). Growth drivers align on AI WFE demand, but KLAC's advanced packaging edge contrasts AMAT's diversified exposure. Recent momentum tilts to AMAT (YTD 69% vs. 54%), though KLAC offers a dividend. Risks include cyclical downturns and tariffs, with similar high betas (~1.8) amplifying volatility; KLAC trades at a P/E premium (53 vs. 45), signaling stronger sentiment but potential overvaluation trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently leans toward AMAT based on superior recent trend consistency, higher YTD momentum (69% vs. 54%), larger scale, and bullish analyst catalysts like elevated price targets amid AI equipment demand. While KLAC excels in profitability and packaging stability, AMAT's relative positioning suggests greater near-term upside probability in the semiconductor cycle.
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 Disclaimers and Limitations.
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 KLAC is a Hold.
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 undervalued. 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 4 FA rating(s) are green whileKLAC’s FA Score has 4 green FA rating(s).
- AMAT’s FA Score: 4 green, 1 red.
- KLAC’s FA Score: 4 green, 1 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, 4 bearish.
- KLAC’s TA Score: 4 bullish, 4 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +0.66% price change this week, while KLAC (@Electronic Production Equipment) price change was +0.39% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -5.00%. For the same industry, the average monthly price growth was -6.66%, and the average quarterly price growth was +104.91%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
KLAC is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Electronic Production Equipment (-5.00% 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.
| AMAT | KLAC | AMAT / KLAC | |
| Capitalization | 360B | 252B | 143% |
| EBITDA | 10.2B | 6.06B | 168% |
| Gain YTD | 76.715 | 59.181 | 130% |
| P/E Ratio | 42.62 | 54.64 | 78% |
| Revenue | 28.2B | 13.1B | 215% |
| Total Cash | 1.54B | 613M | 251% |
| Total Debt | 7.19B | 6.15B | 117% |
AMAT | KLAC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 38 | 26 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 70 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 14 | 4 | |
SMR RATING 1..100 | 24 | 13 | |
PRICE GROWTH RATING 1..100 | 4 | 4 | |
P/E GROWTH RATING 1..100 | 10 | 12 | |
SEASONALITY SCORE 1..100 | 50 | 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 (70) 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 (4) in the Electronic Production Equipment industry is in the same range as AMAT (14). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
KLAC's SMR Rating (13) in the Electronic Production Equipment industry is in the same range as AMAT (24). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
KLAC's Price Growth Rating (4) in the Electronic Production Equipment industry is in the same range as AMAT (4). This means that KLAC’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (10) in the Electronic Production Equipment industry is in the same range as KLAC (12). This means that AMAT’s stock grew similarly to KLAC’s over the last 12 months.
| AMAT | KLAC | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 60% | 2 days ago 64% |
| Stochastic ODDS (%) | 2 days ago 74% | 2 days ago 68% |
| Momentum ODDS (%) | 2 days ago 75% | 2 days ago 80% |
| MACD ODDS (%) | 2 days ago 80% | 2 days ago 81% |
| TrendWeek ODDS (%) | 2 days ago 76% | 2 days ago 76% |
| TrendMonth ODDS (%) | 2 days ago 77% | 2 days ago 78% |
| Advances ODDS (%) | 3 days ago 76% | 3 days ago 75% |
| Declines ODDS (%) | 19 days ago 65% | 9 days ago 61% |
| BollingerBands ODDS (%) | 2 days ago 76% | 2 days ago 72% |
| Aroon ODDS (%) | 2 days ago 74% | 2 days ago 76% |
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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 86% 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% | -9.71% | ||
| LRCX - AMAT | 86% Closely correlated | -9.85% | ||
| KLAC - AMAT | 83% Closely correlated | -9.47% | ||
| ASML - AMAT | 75% Closely correlated | -6.59% | ||
| QCOM - AMAT | 75% Closely correlated | -10.98% | ||
| RMBS - AMAT | 75% Closely correlated | -14.20% | ||
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KLAC and
Correlation & Price change
A.I.dvisor indicates that over the last year, KLAC has been closely correlated with LRCX. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if KLAC jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To KLAC | 1D Price Change % | ||
|---|---|---|---|---|
| KLAC | 100% | -9.47% | ||
| LRCX - KLAC | 85% Closely correlated | -9.85% | ||
| AMAT - KLAC | 83% Closely correlated | -9.71% | ||
| ADI - KLAC | 79% Closely correlated | -6.38% | ||
| NVMI - KLAC | 79% Closely correlated | -8.58% | ||
| QCOM - KLAC | 77% Closely correlated | -10.98% | ||
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