Advertisement
AMAT vs LRCX
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- Both AMAT and LRCX are leading suppliers of wafer fabrication equipment (WFE), the machinery used to manufacture semiconductors, but they occupy different niches within the industry.
- LRCX has delivered sharply stronger recent momentum, with record quarterly revenue and faster top-line growth than AMAT over the past year.
- AMAT offers a more diversified product mix and lower relative valuation, while LRCX is more concentrated in etch and deposition tools tied to memory and advanced packaging.
- China exposure is a shared risk, though LRCX derives a somewhat larger share of revenue from the region than AMAT.
- The trade-off centers on LRCX's superior growth and momentum versus AMAT's broader diversification and more modest multiple.
Introduction
Applied Materials and Lam Research are two of the most closely watched names in semiconductor capital equipment, and their stock comparison frequently surfaces among investors weighing the artificial intelligence (AI) infrastructure buildout. Both companies supply the fabrication tools chipmakers need to produce advanced processors and memory, yet they compete in overlapping but distinct segments of the wafer fabrication equipment (WFE) market. Growth-oriented traders may focus on relative momentum and revenue acceleration, while value-conscious investors may weigh diversification and valuation. Understanding how these two stocks differ in business model, growth drivers, and risk profile can help both experienced investors and newcomers assess their current market positioning.
AMAT Overview and Recent Performance
AMAT (Applied Materials) is the largest and most diversified supplier of semiconductor manufacturing equipment, with a portfolio spanning deposition, etch, planarization, implantation, inspection, and a substantial services business. This breadth gives it exposure across logic, foundry, and memory markets. In its most recent fiscal year, the company generated roughly $28.4 billion in revenue, up about 4% from the prior year, while non-GAAP (non-Generally Accepted Accounting Principles) gross margin reached a multi-decade high. In recent market activity, AMAT has advanced solidly but has lagged several faster-growing WFE peers, reflecting more moderate top-line growth and a tempered outlook tied in part to China-related export restrictions and a softer mix of equipment demand. Analysts have highlighted its leadership in advanced packaging and services as long-term supports, even as near-term revenue growth remains in the low-to-mid single digits.
LRCX Overview and Recent Performance
LRCX (Lam Research) specializes in etch and deposition tools, with particular strength in high-aspect-ratio processing used in memory chips such as DRAM and NAND, as well as in high-bandwidth memory (HBM) and advanced packaging. This focus has positioned it directly in the path of AI-driven demand. The company has reported a sequence of accelerating quarters, culminating in record revenue of roughly $8.2 billion in its most recent quarter, up more than 50% year over year, with adjusted earnings per share (EPS) rising sharply. In recent weeks, however, the stock pulled back after management guided to a slower sequential step-up in revenue, citing reduced purchases from domestic Chinese customers and near-term parts constraints. Despite this near-term pause, LRCX has been among the strongest performers in its peer group over the past year.
Trending AI Robots
For investors seeking a more systematic approach to stock selection, Tickeron's Trending AI Robots page offers a curated view of the platform's AI-powered trading tools. Tickeron hosts hundreds of AI Trading Bots that collectively trade thousands of different tickers, each operating with its own trading style, strategy, timeframe, performance history, and set of tracked securities. Because only the bots best suited to prevailing market conditions earn a place in the curated Trending AI Robots section, traders can quickly identify strategies currently demonstrating strength rather than sifting through the full catalog. Explore the Trending AI Robots page to see which automated approaches are drawing attention in today's market.
Head-to-Head Comparison
The clearest contrast between the two is breadth versus focus. AMAT competes across a wide array of process steps and generates a meaningful recurring revenue stream from services, which can smooth cyclical swings. LRCX, by comparison, concentrates its competitive edge in etch and deposition, giving it outsized leverage to memory spending and AI-related advanced packaging, but also making it more sensitive to the memory cycle. On growth, LRCX has clearly outpaced AMAT in recent quarters, yet it also trades at a higher forward price-to-earnings (P/E) multiple, reflecting investor expectations for continued momentum. China exposure remains a shared risk factor for both names, with LRCX carrying a somewhat higher regional concentration. In terms of market positioning, AMAT skews toward diversification and stability, while LRCX skews toward higher growth and higher sensitivity.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, and positioning, Tickeron's AI would likely lean toward LRCX in the current environment. Its record revenue, accelerating year-over-year growth, and direct exposure to AI-driven memory and advanced packaging demand present a stronger near-term catalyst profile. That said, the recent guide-driven pullback and elevated China concentration introduce a degree of volatility that a momentum model must weigh carefully. AMAT remains a steadier, more diversified alternative with a lower valuation, which may appeal to models emphasizing stability and lower downside sensitivity. The assessment is probabilistic rather than definitive and depends on how each stock's trend and risk metrics evolve in the weeks ahead.
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 LRCX is a Buy.
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 30 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 86%.
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 Indicator 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 suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 45 of 56 cases where AMAT'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 80%.
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 64 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 74%.
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 36 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
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 12 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 80%.
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 October 30, 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 PE Growth Rating for this company is 22 (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 Profit vs. Risk Rating rating for this company is 54 (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 60 (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 76 (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 (11.599) is normal, around the industry mean (6.452). P/E Ratio (32.066) is within average values for comparable stocks, (89.445). 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).
LRCX's RSI Indicator dives into oversold zone
The RSI Oscillator for LRCX moved into overbought territory on November 02, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a +5.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in 272 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
LRCX 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 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LRCX as a result. In 62 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for LRCX turned negative on October 12, 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 57 similar instances when the indicator turned negative. In 36 of the 57 cases the stock turned lower in the days that followed. This puts the odds of success at 63%.
LRCX moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LRCX crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 13 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%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LRCX 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 65%.
The Aroon Indicator for LRCX entered a downward trend on November 02, 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 18 (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 32 (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 48 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. LRCX’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 86 (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: LRCX's P/B Ratio (22.835) is very high in comparison to the industry average of (6.211). P/E Ratio (39.302) is within average values for comparable stocks, (81.436). LRCX's Projected Growth (PEG Ratio) (1.463) 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 (14.620) is also within normal values, averaging (27.897).
AMAT | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 57 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 54 | 48 | |
SMR RATING 1..100 | 25 | 18 | |
PRICE GROWTH RATING 1..100 | 60 | 62 | |
P/E GROWTH RATING 1..100 | 22 | 32 | |
SEASONALITY SCORE 1..100 | n/a | 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 (76) in the Electronic Production Equipment industry is in the same range as LRCX (86). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (48) in the Electronic Production Equipment industry is in the same range as AMAT (54). This means that LRCX’s stock grew similarly to AMAT’s over the last 12 months.
LRCX's SMR Rating (18) in the Electronic Production Equipment industry is in the same range as AMAT (25). This means that LRCX’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's Price Growth Rating (60) in the Electronic Production Equipment industry is in the same range as LRCX (62). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
AMAT's P/E Growth Rating (22) in the Electronic Production Equipment industry is in the same range as LRCX (32). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
| AMAT | LRCX | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 83% | 1 day ago 89% |
| Stochastic ODDS (%) | 4 days ago 80% | 1 day ago 77% |
| Momentum ODDS (%) | 4 days ago 74% | 1 day ago 76% |
| MACD ODDS (%) | 4 days ago 80% | 1 day ago 63% |
| TrendWeek ODDS (%) | 4 days ago 77% | 1 day ago 64% |
| TrendMonth ODDS (%) | 4 days ago 70% | 1 day ago 71% |
| Advances ODDS (%) | 5 days ago 80% | 5 days ago 84% |
| Declines ODDS (%) | 18 days ago 66% | 1 day ago 65% |
| BollingerBands ODDS (%) | 4 days ago 86% | 1 day ago 82% |
| Aroon ODDS (%) | 4 days ago 71% | 1 day ago 70% |
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 LRCX’s FA Score has 2 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- LRCX’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 LRCX’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 6 bearish.
- LRCX’s TA Score: 4 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +3.41% price change this week, while LRCX (@Electronic Production Equipment) price change was -4.19% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -5.35%. For the same industry, the average monthly price growth was -29.97%, and the average quarterly price growth was -35.69%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
LRCX is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Electronic Production Equipment (-5.35% 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.
Advertisement
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% | -7.49% | ||
| LRCX - AMAT | 91% Closely correlated | -6.01% | ||
| KLAC - AMAT | 88% Closely correlated | -5.69% | ||
| ONTO - AMAT | 84% Closely correlated | -9.16% | ||
| ASML - AMAT | 82% Closely correlated | -6.55% | ||
| NVMI - AMAT | 81% Closely correlated | -6.68% | ||
More | ||||