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AMAT vs LRCX
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- Both AMAT and LRCX are core beneficiaries of the AI-driven surge in semiconductor equipment spending, but they hold different positions in the supply chain.
- Applied Materials is a diversified materials-engineering leader spanning deposition, etch, inspection, and advanced packaging, while Lam Research is more concentrated in etch and deposition with outsized memory exposure.
- Lam Research has delivered the stronger recent share-price momentum, gaining roughly 190% over the past 12 months versus about 180% for Applied Materials, though both trade at premium valuations.
- Applied Materials carries greater scale and breadth, while Lam Research shows higher operating leverage to memory cycles and high-bandwidth memory (HBM) demand.
- Both companies face shared risks from China export restrictions, valuation compression, and any slowdown in AI-related capital expenditure.
- Analysts broadly rate both stocks favorably, but price targets reflect growing debate over how much premium investors should pay for AI-driven growth.
Introduction
Applied Materials (AMAT) and Lam Research (LRCX) are two of the largest suppliers of the wafer-fabrication equipment used to manufacture advanced semiconductors. As the global build-out of artificial intelligence (AI) infrastructure accelerates, both companies have emerged as key beneficiaries, yet their business models, end-market exposure, and relative performance differ in meaningful ways. This stock comparison is relevant for investors and traders evaluating how to position within the semiconductor equipment sector, whether they prioritize diversification and scale or leverage to the memory market. The sections below assess recent performance, growth drivers, and market positioning to clarify the trade-offs between these two industry leaders.
AMAT Overview and Recent Performance
Applied Materials is the world's largest semiconductor equipment maker by revenue, offering a broad portfolio that spans deposition, etch, planarization, wafer cleaning, metrology, inspection, and advanced packaging. This diversification across foundry, logic, and memory customers has helped the company capture demand from multiple segments of the AI chip supply chain.
In recent weeks, AMAT has continued to benefit from strong AI-driven demand, with revenue and earnings beating consensus expectations and management guiding to further sequential growth. The company has also expanded its strategic partnerships, including deepening its collaboration with BE Semiconductor Industries on advanced packaging and interconnect technologies for AI accelerators. At the same time, sentiment has cooled from peak levels: shares have pulled back notably from their 52-week high, and some analysts have trimmed price targets primarily on valuation rather than fundamentals, reflecting debate over whether the stock's premium multiple is fully justified. The shares remain well above their 50-day and 200-day moving averages, indicating an intact but moderating uptrend.
LRCX Overview and Recent Performance
Lam Research is a specialized supplier of etch and deposition equipment, two critical steps in chip manufacturing, and holds a particularly strong position in the memory market. Its tools are widely used in the production of DRAM (dynamic random-access memory) and NAND flash, as well as in advanced packaging for high-bandwidth memory (HBM), which is essential to AI processors.
Recent market activity has been favorable for LRCX. The stock has been among the sector's strongest performers, supported by record quarterly revenue, expanding non-GAAP operating margins, and rising memory-equipment budgets from major customers. Signs of a tightening memory supply environment have strengthened the case for additional capacity investment, which analysts view as a tailwind for Lam's order book. The company also raised its quarterly dividend and stepped up share repurchases, underscoring management confidence in cash generation. However, the sharp rally has left the shares trading at a premium to the broader semiconductor equipment industry, leaving limited room for disappointment on execution or the timing of new equipment orders.
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Head-to-Head Comparison
The most important contrast between these two companies is breadth versus concentration. Applied Materials offers a more diversified product line and revenue base, which can smooth out volatility across individual end markets but may dilute exposure to any single high-growth segment. Lam Research, by contrast, is more concentrated in etch and deposition and carries heavier leverage to memory and HBM, giving it potentially greater upside when memory spending accelerates but also more sensitivity to memory cycle downturns.
On recent momentum, Lam Research has outpaced Applied Materials, reflecting enthusiasm around a tightening memory supply and rising capital-expenditure commitments from memory producers. Growth drivers also differ in emphasis: Applied Materials highlights leading-edge logic, advanced packaging, and panel-level solutions, while Lam Research emphasizes NAND conversion, HBM packaging, and layer-count growth. Risk profiles overlap through China export restrictions and valuation, though Lam's memory concentration and Applied's higher price-to-sales multiple represent distinct sensitivities. Market sentiment toward both remains broadly positive, but increasingly conditioned on sustained AI investment.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative momentum, and catalyst visibility, Tickeron's AI would likely favor LRCX in the current environment. Lam Research's stronger recent price momentum, expanding margins, and direct leverage to a tightening memory market — combined with rising customer capital-expenditure signals — present a comparatively clearer near-term catalyst set. Applied Materials remains the more diversified and defensible franchise, but its premium multiple and recent valuation-driven pullback introduce somewhat greater near-term uncertainty. This assessment reflects probabilistic positioning rather than a definitive forecast, and relative rankings could shift as new earnings data and macro conditions emerge.
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 LRCX is a Hold.
AMAT | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 36 | 84 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 40 | 31 | |
SMR RATING 1..100 | 25 | 18 | |
PRICE GROWTH RATING 1..100 | 38 | 39 | |
P/E GROWTH RATING 1..100 | 9 | 9 | |
SEASONALITY SCORE 1..100 | 90 | 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 LRCX (85). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (31) in the Electronic Production Equipment industry is in the same range as AMAT (40). 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 (38) in the Electronic Production Equipment industry is in the same range as LRCX (39). This means that AMAT’s stock grew similarly to LRCX’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 LRCX (9). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
| AMAT | LRCX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 61% | 2 days ago 58% |
| Stochastic ODDS (%) | 2 days ago 67% | 2 days ago 77% |
| Momentum ODDS (%) | 2 days ago 78% | 2 days ago 66% |
| MACD ODDS (%) | 2 days ago 82% | 2 days ago 63% |
| TrendWeek ODDS (%) | 2 days ago 67% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 82% |
| Advances ODDS (%) | 9 days ago 79% | 12 days ago 84% |
| Declines ODDS (%) | 2 days ago 66% | 2 days ago 65% |
| BollingerBands ODDS (%) | N/A | 2 days ago 85% |
| Aroon ODDS (%) | 2 days ago 59% | 2 days ago 73% |
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 3 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- LRCX’s FA Score: 3 green, 2 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 5 TA indicator(s) are bullish while LRCX’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 4 bearish.
- LRCX’s TA Score: 4 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -8.25% price change this week, while LRCX (@Electronic Production Equipment) price change was -10.48% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -11.51%. For the same industry, the average monthly price growth was -4.16%, and the average quarterly price growth was -7.09%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
LRCX is expected to report earnings on Oct 21, 2026.
Industries' Descriptions
@Electronic Production Equipment (-11.51% 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% | -1.87% | ||
| LRCX - AMAT | 91% Closely correlated | -2.91% | ||
| KLAC - AMAT | 87% Closely correlated | -2.79% | ||
| ONTO - AMAT | 84% Closely correlated | -7.06% | ||
| NVMI - AMAT | 82% Closely correlated | -3.57% | ||
| ASML - AMAT | 81% Closely correlated | -1.69% | ||
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LRCX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LRCX has been closely correlated with AMAT. These tickers have moved in lockstep 91% of the time. This A.I.-generated data suggests there is a high statistical probability that if LRCX jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To LRCX | 1D Price Change % | ||
|---|---|---|---|---|
| LRCX | 100% | -2.91% | ||
| AMAT - LRCX | 91% Closely correlated | -1.87% | ||
| KLAC - LRCX | 87% Closely correlated | -2.79% | ||
| ASML - LRCX | 85% Closely correlated | -1.69% | ||
| NVMI - LRCX | 85% Closely correlated | -3.57% | ||
| RMBS - LRCX | 80% Closely correlated | -5.98% | ||
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