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AMAT vs TER
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- Applied Materials (AMAT) is the largest provider of semiconductor wafer fabrication equipment (WFE), while Teradyne (TER) specializes in automated test equipment and robotics.
- Both names are riding an AI-driven surge in memory and advanced packaging demand, but they occupy different points in the semiconductor manufacturing value chain.
- AMAT has delivered record quarters and repeatedly raised guidance, yet the shares pulled back sharply from prior highs on valuation concerns.
- TER reported triple-digit revenue growth in its most recent quarter and has outpaced the broader tech sector in recent weeks on new AI memory-testing platforms.
- AMAT offers broader portfolio diversification and a growing dividend, while TER carries a smaller, more concentrated business with higher growth rates.
Introduction
Applied Materials and Teradyne are two prominent equipment suppliers to the global semiconductor industry, yet they serve very different functions. AMAT builds the systems that fabricate chips and advanced packaging, while TER builds the systems that test those chips before deployment. With artificial intelligence (AI) infrastructure spending reshaping the sector, both stocks have drawn heavy investor interest. This comparison is relevant for traders and investors evaluating relative performance, growth drivers, and risk across two companies exposed to the same broad theme but through distinct business models. Understanding their market positioning can help clarify how each may behave across different phases of the semiconductor cycle.
AMAT Overview and Recent Performance
AMAT is the world's largest supplier of wafer fabrication equipment, with a portfolio spanning deposition, etch, planarization, metrology, and inspection. Its leadership in high-bandwidth memory (HBM) and 3D chiplet stacking has positioned it at the center of the AI build-out. In recent quarters, Applied Materials posted record results, with semiconductor systems revenue rising sharply and management repeatedly raising forward guidance. In its most recent report, revenue grew roughly 25% year over year, and management guided for a further acceleration driven by leading-edge foundry-logic, DRAM (dynamic random-access memory), and advanced packaging.
Several developments have shaped sentiment. The company launched a suite of new systems targeting next-generation DRAM, HBM, and advanced packaging, and it announced an agreement to acquire ASMPT's NEXX business to broaden its panel-level packaging capabilities. Applied Materials also increased its quarterly dividend by 15%, marking nine consecutive years of increases. Despite strong fundamentals, the stock has been volatile: shares surged dramatically over the trailing year before pulling back from their peak, reflecting investor sensitivity to valuation after a rapid re-rating.
TER Overview and Recent Performance
TER designs and manufactures automated test equipment, with semiconductor testing accounting for the large majority of revenue and a smaller, fast-growing robotics segment focused on automation and physical AI. The company tests advanced processors, memory, and increasingly optical components used in AI data centers. In its most recent quarter, Teradyne reported record revenue that more than doubled year over year, with strong demand in compute and memory testing tied to AI applications.
Recent market activity has been shaped by a wave of product announcements. Teradyne introduced the Magnum E2 memory-test platform for advanced DRAM and NAND (flash memory) interfaces, along with the Iris 100 optical-test platform for microLED and optical interconnect applications. These launches, combined with the broader strength in memory markets, contributed to a notable share-price rally in recent weeks that outpaced the broader sector. The company's closer ties to robotics and physical AI also differentiate it from pure-play equipment makers, though its revenue base remains more concentrated than AMAT's.
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Head-to-Head Comparison
The two companies occupy complementary but distinct roles. AMAT sells fabrication and packaging equipment that enables chip production, giving it a broad, diversified revenue stream across foundry-logic, DRAM, and flash memory, plus a growing services business. TER focuses on test and measurement, a narrower but increasingly critical step as chip complexity rises, supplemented by an emerging robotics segment.
On growth, TER has recently posted faster year-over-year expansion, reflecting a sharp recovery from a depressed base and a powerful memory upcycle. AMAT, by contrast, generates substantially larger absolute revenue and earnings, and its growth is underpinned by multi-year customer roadmaps and a larger installed base. On valuation and momentum, AMAT trades at a premium sales multiple after a steep run-up but has experienced a meaningful correction from its high, while TER has shown stronger near-term relative strength as sentiment improved. Risk profiles also differ: AMAT is diversified across multiple technologies and geographies but carries meaningful China exposure, while TER is more concentrated in semiconductor test and remains sensitive to swings in memory capital expenditure (capex) cycles.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor Teradyne for near-term momentum and trend consistency, given its accelerating revenue growth, fresh product catalysts in AI memory and optical testing, and stronger recent relative performance. Applied Materials, however, presents a more stable, diversified fundamental profile with broader portfolio exposure and a more established track record of returning capital to shareholders. A probabilistic assessment suggests TER currently exhibits stronger short-term trend characteristics, while AMAT may appeal more to investors prioritizing stability and diversification over the fastest growth. The relative positioning of each name will likely continue to hinge on the trajectory of memory pricing, AI capital spending, and broader semiconductor demand.
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 sees MACD Histogram just turned negative
AMAT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 13, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In 35 of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AMAT moved out of overbought territory on October 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 29 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
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 62 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 71%.
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.
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.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for AMAT crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 79%.
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%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 9 (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 Price Growth Rating for this company is 38 (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 Profit vs. Risk Rating rating for this company is 44 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock slightly better than average.
The Tickeron Valuation Rating of 71 (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 (15.083) is normal, around the industry mean (8.078). P/E Ratio (41.998) is within average values for comparable stocks, (161.623). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
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.
TER sees MACD Histogram crosses below signal line
TER saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 12, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 48 instances where the indicator turned negative. In 36 of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 75%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TER moved out of overbought territory on October 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In 32 of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at 65%.
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%.
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.
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%.
TER broke above its upper Bollinger Band on October 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated 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.
The 10-day moving average for TER crossed bullishly above the 50-day moving average on September 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 85%.
Following a +12.01% 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%.
The Aroon Indicator entered an Uptrend today. In 260 of 311 cases where TER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 84%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 10 (best 1 - 100 worst), indicating outstanding 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 25 (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 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 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly 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.
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: TER's P/B Ratio (18.248) is slightly higher than the industry average of (8.078). P/E Ratio (55.124) is within average values for comparable stocks, (161.623). Projected Growth (PEG Ratio) (0.734) is also within normal values, averaging (0.801). Dividend Yield (0.001) settles around the average of (0.002) among similar stocks. P/S Ratio (12.077) is also within normal values, averaging (27.897).
AMAT | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 88 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 44 | 29 | |
SMR RATING 1..100 | 25 | 28 | |
PRICE GROWTH RATING 1..100 | 38 | 10 | |
P/E GROWTH RATING 1..100 | 9 | 25 | |
SEASONALITY SCORE 1..100 | 85 | 75 |
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 TER (76). This means that AMAT’s stock grew similarly to TER’s over the last 12 months.
TER's Profit vs Risk Rating (29) in the Electronic Production Equipment industry is in the same range as AMAT (44). 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 (10) in the Electronic Production Equipment industry is in the same range as AMAT (38). This means that TER’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 TER (25). This means that AMAT’s stock grew similarly to TER’s over the last 12 months.
| AMAT | TER | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 64% | 2 days ago 65% |
| Stochastic ODDS (%) | 2 days ago 75% | 2 days ago 72% |
| Momentum ODDS (%) | 2 days ago 71% | 2 days ago 74% |
| MACD ODDS (%) | 2 days ago 78% | 2 days ago 75% |
| TrendWeek ODDS (%) | 2 days ago 67% | 2 days ago 69% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 82% |
| Advances ODDS (%) | 10 days ago 79% | 13 days ago 81% |
| Declines ODDS (%) | 2 days ago 66% | 2 days ago 66% |
| BollingerBands ODDS (%) | N/A | 2 days ago 65% |
| Aroon ODDS (%) | 2 days ago 57% | 2 days ago 84% |
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 4 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- TER’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 3 TA indicator(s) are bullish while TER’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 3 bullish, 6 bearish.
- TER’s TA Score: 4 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -12.45% price change this week, while TER (@Electronic Production Equipment) price change was -11.63% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -14.63%. For the same industry, the average monthly price growth was -1.52%, and the average quarterly price growth was -14.81%.
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 (-14.63% 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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