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AMAT vs TER
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- AMAT is a large-cap leader in wafer fab equipment (WFE, the machinery used to manufacture chips), while TER is a smaller-cap specialist in semiconductor test equipment and robotics.
- Both stocks have posted strong one-year gains tied to AI-driven semiconductor demand, but TER has delivered sharper revenue acceleration while AMAT offers greater scale and a steadier services franchise.
- AMAT trades at a lower forward valuation, while TER carries a higher multiple that reflects faster recent earnings growth.
- Each company faces distinct risks: AMAT is exposed to China-related export restrictions, and TER to more concentrated, cyclical test-equipment demand.
- Sentiment has cooled on both names after strong runs, with profit-taking pressuring shares in recent weeks despite solid fundamentals.
Introduction
Applied Materials (AMAT) and Teradyne (TER) both sit at the center of the semiconductor capital equipment ecosystem, yet they play very different roles within it. AMAT supplies the manufacturing tools used to fabricate chips, while TER builds the systems used to test them once produced. This stock comparison is relevant for investors seeking exposure to artificial intelligence (AI) infrastructure without owning chip designers themselves, as well as for traders weighing relative performance, momentum, and market positioning across two names whose fortunes are linked to the same demand cycle but whose risk profiles diverge meaningfully.
AMAT Overview and Recent Performance
Applied Materials is one of the world's largest suppliers of wafer fab equipment and related services, spanning deposition, etch, and process control technologies used across foundry, logic, and memory manufacturing. Its diversified model is anchored by a growing services segment, Applied Global Services, which generates recurring revenue tied to the installed base of tools.
Recent market activity has reflected strong fundamentals alongside a notable pullback. AMAT reported record quarterly revenue of roughly $9.12 billion, up about 25% year over year, with non-GAAP earnings per share (EPS, a profitability measure excluding one-time items) climbing more than 40%. Management also laid out a 2030 framework targeting roughly 54% non-GAAP gross margin and services revenue above $12 billion. Despite these results, shares have retreated from their recent peak near $740 to around $400, a decline driven by profit-taking and concerns about gross-margin progression and China exposure, which represented about 28% of recent revenue. The stock nonetheless remains up well over 70% over the past year.
TER Overview and Recent Performance
Teradyne designs and manufactures automated test equipment (ATE) for semiconductors and electronics, alongside a robotics business that includes collaborative and autonomous mobile robots. Its "wafer-to-AI data center" strategy has made it a key beneficiary of rising test intensity for AI accelerators and high-bandwidth memory (HBM, the stacked memory used in AI servers).
TER's recent performance has been characterized by exceptional growth and elevated volatility. Quarterly revenue surged roughly 87% year over year to a record $1.28 billion, with management estimating about 70% of revenue tied to AI-related demand. Semiconductor Test generated the bulk of sales, while gross margin expanded to about 61%. A subsequent quarter delivered another record, with revenue approximately doubling year over year. However, the shares have been prone to sharp swings, selling off after earnings reports on concerns about "lumpy" order patterns, even as fundamentals improved. TER remains up more than 140% over the past year, reflecting both strong execution and a richly priced growth narrative.
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Head-to-Head Comparison
The most fundamental contrast between these two companies is their position within the semiconductor value chain. AMAT operates a broad, diversified equipment portfolio serving fabrication across foundry, logic, DRAM, and flash memory, and it commands a market capitalization of roughly $324 billion. TER is far smaller, at about $54 billion, and concentrates on test equipment plus a developing robotics segment. This difference in scale translates into different growth and valuation profiles.
On momentum, TER has grown revenue far faster in recent quarters, roughly doubling year over year, while AMAT has posted more measured growth of around 25%. That acceleration, however, comes with a higher multiple: TER trades near 35 times forward earnings, versus roughly 23 times for AMAT. On stability, AMAT benefits from a recurring services business and a long track record of dividend growth, while TER's earnings are more exposed to the lumpiness of test-equipment ordering cycles.
Risk factors also differ. AMAT faces sensitivity to export controls and customer concentration in China, whereas TER contends with narrower end-market exposure and ongoing robotics restructuring. Both share sensitivity to broader semiconductor capital spending trends.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, and relative positioning, Tickeron's AI would likely view TER as the higher-momentum candidate, given its exceptional revenue acceleration and expanding operating margin. At the same time, AMAT would probably register as the more stable, lower-valuation alternative, supported by its diversified portfolio, recurring services income, and consistent profitability. A probabilistic assessment would favor TER for momentum-oriented strategies and AMAT for investors prioritizing stability and valuation, meaning neither name holds a decisive edge across all criteria.
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 TER is a Hold.
AMAT in upward trend: price may jump up because it broke 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 Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 251 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
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 63 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 72%.
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 28 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
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 13 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 87%.
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 September 25, 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 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 61 (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 (11.683) is normal, around the industry mean (6.249). P/E Ratio (32.298) is within average values for comparable stocks, (84.682). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.832). Dividend Yield (0.006) settles around the average of (0.008) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.093).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
TER's Stochastic Oscillator is sitting in oversold zone for 9 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +2.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where TER advanced for three days, in 254 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
TER may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 236 of 303 cases where TER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
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 TER as a result. In 66 of 89 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 TER 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 49 similar instances when the indicator turned negative. In 34 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
TER 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 TER 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 9 of 14 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 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TER 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%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 28 (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 42 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. TER’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average 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 Valuation Rating of 79 (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: TER's P/B Ratio (14.048) is slightly higher than the industry average of (6.249). P/E Ratio (42.193) is within average values for comparable stocks, (84.682). Projected Growth (PEG Ratio) (0.734) is also within normal values, averaging (0.832). Dividend Yield (0.002) settles around the average of (0.008) among similar stocks. P/S Ratio (12.077) is also within normal values, averaging (27.093).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
AMAT | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 79 Overvalued | |
PROFIT vs RISK RATING 1..100 | 58 | 42 | |
SMR RATING 1..100 | 25 | 28 | |
PRICE GROWTH RATING 1..100 | 61 | 56 | |
P/E GROWTH RATING 1..100 | 22 | 61 | |
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 (76) in the Electronic Production Equipment industry is in the same range as TER (79). This means that AMAT’s stock grew similarly to TER’s over the last 12 months.
TER's Profit vs Risk Rating (42) in the Electronic Production Equipment industry is in the same range as AMAT (58). This means that TER’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's SMR Rating (25) in the Electronic Production Equipment industry is in the same range as TER (28). This means that AMAT’s stock grew similarly to TER’s over the last 12 months.
TER's Price Growth Rating (56) in the Electronic Production Equipment industry is in the same range as AMAT (61). This means that TER’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's P/E Growth Rating (22) in the Electronic Production Equipment industry is somewhat better than the same rating for TER (61). This means that AMAT’s stock grew somewhat faster than TER’s over the last 12 months.
| AMAT | TER | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 82% | 3 days ago 88% |
| Stochastic ODDS (%) | 3 days ago 80% | 3 days ago 90% |
| Momentum ODDS (%) | 3 days ago 72% | 3 days ago 74% |
| MACD ODDS (%) | 3 days ago 62% | 3 days ago 69% |
| TrendWeek ODDS (%) | 3 days ago 67% | 3 days ago 69% |
| TrendMonth ODDS (%) | 3 days ago 70% | 3 days ago 72% |
| Advances ODDS (%) | 21 days ago 79% | 5 days ago 81% |
| Declines ODDS (%) | 10 days ago 66% | 10 days ago 66% |
| BollingerBands ODDS (%) | 3 days ago 83% | 3 days ago 81% |
| Aroon ODDS (%) | 3 days ago 63% | 3 days ago 78% |
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 TER’s FA Score has 1 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- TER’s FA Score: 1 green, 4 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 TER’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 6 bearish.
- TER’s TA Score: 5 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -7.83% price change this week, while TER (@Electronic Production Equipment) price change was -4.97% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -4.19%. For the same industry, the average monthly price growth was -22.43%, and the average quarterly price growth was -32.54%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
TER is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Electronic Production Equipment (-4.19% 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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