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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 leading semiconductor equipment providers benefiting from sustained AI-driven demand for advanced chip manufacturing tools.
- Recent market activity shows both stocks experiencing pullbacks after strong year-to-date gains, with AMAT trading near $456 and LRCX near $298 as of mid-September 2026.
- AMAT reported record fiscal Q3 2026 revenue of $9.1 billion, up 25% year-over-year, supported by broad exposure across deposition, etch, and inspection processes.
- LRCX raised its 2026 wafer fabrication equipment spending outlook and increased its quarterly dividend by 27%, returning over $5 billion to shareholders in fiscal 2026.
- Relative performance highlights trade-offs: AMAT offers greater portfolio diversification, while LRCX maintains leadership in etch and deposition with strong service revenue growth.
- Sector sentiment remains constructive amid multi-year visibility into AI-related capital expenditures, though both face risks from customer concentration and geopolitical factors.
Introduction
Applied Materials (AMAT) and Lam Research (LRCX) rank among the largest U.S. suppliers of semiconductor manufacturing equipment. The comparison appeals to investors and traders seeking exposure to the capital equipment segment of the semiconductor supply chain, particularly those focused on artificial intelligence infrastructure buildouts. Participants in this space monitor wafer fabrication equipment spending trends, order visibility, and relative valuation metrics to assess positioning within a cyclical yet structurally growing industry.
AMAT Overview and Recent Performance
Applied Materials provides equipment for deposition, etch, ion implantation, and inspection used in advanced logic and memory chip production. In recent weeks, the stock has pulled back from earlier highs following robust fiscal third-quarter 2026 results that included revenue of $9.1 billion, a 25% year-over-year increase, and record non-GAAP earnings. Management highlighted multi-year AI order visibility and rolling eight-quarter forecasts from customers. Year-to-date gains remain substantial despite the near-term pressure, reflecting broader market enthusiasm for semiconductor equipment tied to AI compute demand.
LRCX Overview and Recent Performance
Lam Research specializes in etch and deposition equipment with particular strength in three-dimensional NAND memory and advanced packaging. Recent market activity shows the shares retreating after a strong run, though fundamentals stayed supportive. The company raised its calendar 2026 wafer fabrication equipment spending forecast and announced a 27% increase in its quarterly dividend. In fiscal 2026, Lam returned more than $5 billion to shareholders through buybacks and dividends while expanding its global research and development network to accelerate AI-era innovation.
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Head-to-Head Comparison
Applied Materials maintains a broader product portfolio spanning multiple process steps, offering diversified revenue streams compared with Lam Research’s more concentrated focus on etch and deposition. Both companies derive significant demand from AI-related investments in logic and high-bandwidth memory, yet Lam has shown particular momentum in advanced packaging and service revenue. Recent momentum favors neither decisively, as both experienced similar percentage pullbacks amid sector rotation. Risk factors include customer concentration among leading chipmakers and exposure to U.S.-China trade dynamics. Market sentiment remains positive on long-term structural growth, with analysts maintaining constructive ratings on both names.
Tickeron AI Verdict
Based on observable factors such as earnings consistency, order visibility, and relative positioning within the AI supply chain, Tickeron’s AI models currently assign a modest probabilistic preference to AMAT for its broader diversification and recent quarterly scale. However, LRCX demonstrates comparable strength in targeted segments and capital return policies, suggesting outcomes remain sensitive to evolving wafer fabrication equipment spending trends and individual portfolio construction.
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 | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 72 | 87 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 81 Overvalued | |
PROFIT vs RISK RATING 1..100 | 44 | 32 | |
SMR RATING 1..100 | 25 | 18 | |
PRICE GROWTH RATING 1..100 | 43 | 42 | |
P/E GROWTH RATING 1..100 | 9 | 10 | |
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 (67) in the Electronic Production Equipment industry is in the same range as LRCX (81). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (32) in the Electronic Production Equipment industry is in the same range as AMAT (44). 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.
LRCX's Price Growth Rating (42) in the Electronic Production Equipment industry is in the same range as AMAT (43). This means that LRCX’s stock grew similarly to AMAT’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 (10). This means that AMAT’s stock grew similarly to LRCX’s over the last 12 months.
| AMAT | LRCX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 81% | N/A |
| Stochastic ODDS (%) | 2 days ago 80% | 2 days ago 89% |
| Momentum ODDS (%) | 2 days ago 75% | 2 days ago 61% |
| MACD ODDS (%) | 2 days ago 82% | 2 days ago 64% |
| TrendWeek ODDS (%) | 2 days ago 77% | 2 days ago 82% |
| TrendMonth ODDS (%) | 2 days ago 69% | 2 days ago 70% |
| Advances ODDS (%) | 2 days ago 79% | 2 days ago 84% |
| Declines ODDS (%) | 7 days ago 65% | 7 days ago 64% |
| BollingerBands ODDS (%) | N/A | 2 days ago 85% |
| Aroon ODDS (%) | 2 days ago 72% | 2 days ago 69% |
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 3 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 2 bearish.
- LRCX’s TA Score: 3 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +9.44% price change this week, while LRCX (@Electronic Production Equipment) price change was +10.53% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +12.82%. For the same industry, the average monthly price growth was -1.57%, and the average quarterly price growth was +26.53%.
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 (+12.82% 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% | +4.42% | ||
| LRCX - AMAT | 91% Closely correlated | +4.92% | ||
| KLAC - AMAT | 87% Closely correlated | +3.94% | ||
| ONTO - AMAT | 83% Closely correlated | +4.76% | ||
| NVMI - AMAT | 82% Closely correlated | +1.88% | ||
| ASML - AMAT | 82% Closely correlated | +1.87% | ||
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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 90% 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% | +4.92% | ||
| AMAT - LRCX | 90% Closely correlated | +4.42% | ||
| KLAC - LRCX | 87% Closely correlated | +3.94% | ||
| NVMI - LRCX | 85% Closely correlated | +1.88% | ||
| ASML - LRCX | 85% Closely correlated | +1.87% | ||
| RMBS - LRCX | 80% Closely correlated | +10.68% | ||
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