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AMAT vs TSM
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Taiwan Semiconductor Manufacturing Company (TSM) Stock Comparison
Key Takeaways
- Both AMAT and TSM have delivered strong year-to-date gains driven by AI demand, with AMAT up approximately 48% and TSM around 31%.
- TSM commands a market cap exceeding $2 trillion with superior profit margins near 47%, compared to AMAT's $300 billion cap and 28% margins.
- Recent semiconductor sector sell-offs pressured both stocks, but analyst targets suggest upside potential for each, averaging $423 for AMAT and $463 for TSM.
- AI catalysts bolster sentiment, with TSM benefiting from foundry leadership and AMAT from equipment demand in advanced nodes.
- Technical indicators show bullish trends for both in recent weeks, though overbought conditions signal possible near-term pullbacks.
- Tickeron's AI tools highlight high-performing bots trading semiconductor tickers like AMAT with annualized returns up to 96%.
Introduction
Applied Materials (AMAT) and Taiwan Semiconductor Manufacturing Company (TSM), key players in the semiconductor ecosystem, offer investors exposure to the surging AI and advanced computing markets. AMAT provides essential manufacturing equipment, while TSM dominates as the world's leading contract chip foundry. This comparison is particularly relevant for traders eyeing sector momentum, growth investors betting on AI infrastructure expansion, and portfolio managers seeking relative performance insights amid volatile market conditions. By examining recent trends and fundamentals, readers can better assess positioning in today's tech-driven environment.
AMAT Overview and Recent Performance
Applied Materials (AMAT) is a leading supplier of semiconductor manufacturing equipment, materials engineering solutions, and services for chip production. In recent market activity, AMAT shares have shown robust momentum, climbing nearly 48% year-to-date and over 155% in the past year, fueled by AI-related demand for advanced logic chips, high-bandwidth memory (HBM), and packaging technologies. The stock recently traded around $381, near its 52-week high of $420, though it faced pressure from a broader semiconductor sell-off linked to China export curbs and sector rotation.
First-quarter 2026 results highlighted resilience, with revenue of $7.01 billion and non-GAAP EPS (earnings per share) of $2.38, supported by over 20% growth guidance in the semiconductor segment. Analyst upgrades, including B. Riley raising its target to $485, reflect optimism on AI chip production ramps. Technical signals like MACD crossovers and momentum above zero in recent weeks underscore upward trends, tempered by RSI exiting overbought levels. China exposure remains a risk factor amid U.S. restrictions.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company (TSM), or TSMC, is the premier pure-play foundry, fabricating chips for major clients like Nvidia and Apple. Shares have advanced about 31% year-to-date and 143% over the past year, trading near $392 after hitting a 52-week high of $414. Recent weeks saw volatility, with a post-earnings dip despite strong Q1 2026 results—revenue up 39% year-over-year to $35.9 billion and EPS of $3.49—driven by high-performance computing demand comprising 61% of sales.
Geopolitical tensions and competition concerns contributed to the pullback, alongside TSMC's exit from its Arm stake. Bullish technicals persist, including Aroon uptrends and moving average crossovers, signaling potential continuation higher. With a forward P/E (price-to-earnings ratio) around 25 and analyst consensus pointing to $463 targets, TSM's scale and advanced node leadership (e.g., 3nm, 2nm) sustain positive sentiment amid AI expansion.
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Head-to-Head Comparison
AMAT and TSM differ fundamentally: AMAT's equipment model ties it to capital spending cycles, offering leverage to fab expansions, while TSM's foundry focus provides steadier revenue from production volumes. Growth drivers align on AI, but TSM's client diversity and node dominance (e.g., 60%+ advanced tech revenue) edge out AMAT's exposure to HBM and packaging tools.
Recent momentum favors AMAT's higher YTD gains, yet TSM exhibits greater stability with lower beta (1.25 vs. 1.64) and superior ROE (return on equity, a profitability measure) at 36%. Risk profiles contrast: TSM faces Taiwan Strait geopolitics, AMAT contends with U.S.-China trade frictions impacting 30%+ of sales. Sector exposure is pure semis for both, but TSM's $2T+ cap amplifies systemic influence. Market sentiment leans bullish for each, with "Strong Buy" ratings, though TSM's margins (46.5%) dwarf AMAT's (27.8%), highlighting scale advantages versus AMAT's cyclical upside.
Tickeron AI Verdict
Tickeron’s AI currently favors TSM for its unmatched foundry leadership, recent earnings beat on AI surge, and consistent technical uptrends like Aroon and MACD signals. While AMAT shows stronger short-term momentum and bot-traded appeal, TSM's stability, higher analyst targets relative to price, and positioning in advanced nodes suggest greater probability of sustained outperformance amid ongoing AI catalysts.
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. Disclaimers and Limitations
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 TSM is a Hold.
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 undervalued. 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 4 FA rating(s) are green whileTSM’s FA Score has 3 green FA rating(s).
- AMAT’s FA Score: 4 green, 1 red.
- TSM’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 4 TA indicator(s) are bullish while TSM’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 3 bearish.
- TSM’s TA Score: 4 bullish, 3 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +9.29% price change this week, while TSM (@Semiconductors) price change was +5.95% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +0.39%. For the same industry, the average monthly price growth was +9.32%, and the average quarterly price growth was +131.78%.
The average weekly price growth across all stocks in the @Semiconductors industry was +0.88%. For the same industry, the average monthly price growth was -1.32%, and the average quarterly price growth was +94.90%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
TSM is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Electronic Production Equipment (+0.39% 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.
@Semiconductors (+0.88% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| AMAT | TSM | AMAT / TSM | |
| Capitalization | 508B | 2.06T | 25% |
| EBITDA | 11.1B | 2.99T | 0% |
| Gain YTD | 149.728 | 55.119 | 272% |
| P/E Ratio | 60.22 | 40.24 | 150% |
| Revenue | 29B | 4.1T | 1% |
| Total Cash | 8.24B | N/A | - |
| Total Debt | 7.27B | N/A | - |
AMAT | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 45 | 44 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 78 Overvalued | 65 Fair valued | |
PROFIT vs RISK RATING 1..100 | 5 | 4 | |
SMR RATING 1..100 | 24 | 26 | |
PRICE GROWTH RATING 1..100 | 2 | 37 | |
P/E GROWTH RATING 1..100 | 5 | 16 | |
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.
TSM's Valuation (65) in the Semiconductors industry is in the same range as AMAT (78) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to AMAT’s over the last 12 months.
TSM's Profit vs Risk Rating (4) in the Semiconductors industry is in the same range as AMAT (5) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's SMR Rating (24) in the Electronic Production Equipment industry is in the same range as TSM (26) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TSM’s over the last 12 months.
AMAT's Price Growth Rating (2) in the Electronic Production Equipment industry is somewhat better than the same rating for TSM (37) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than TSM’s over the last 12 months.
AMAT's P/E Growth Rating (5) in the Electronic Production Equipment industry is in the same range as TSM (16) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TSM’s over the last 12 months.
| AMAT | TSM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 65% | 2 days ago 60% |
| Stochastic ODDS (%) | 2 days ago 69% | 2 days ago 59% |
| Momentum ODDS (%) | 2 days ago 74% | 2 days ago 79% |
| MACD ODDS (%) | 2 days ago 77% | 2 days ago 70% |
| TrendWeek ODDS (%) | 2 days ago 76% | 2 days ago 74% |
| TrendMonth ODDS (%) | 2 days ago 77% | 2 days ago 77% |
| Advances ODDS (%) | 2 days ago 76% | 2 days ago 72% |
| Declines ODDS (%) | N/A | N/A |
| BollingerBands ODDS (%) | 2 days ago 65% | 2 days ago 51% |
| Aroon ODDS (%) | 2 days ago 75% | 2 days ago 73% |
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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 88% 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% | +3.74% | ||
| LRCX - AMAT | 88% Closely correlated | +5.27% | ||
| KLAC - AMAT | 85% Closely correlated | +3.70% | ||
| NVMI - AMAT | 78% Closely correlated | +1.35% | ||
| ASML - AMAT | 77% Closely correlated | -0.02% | ||
| ONTO - AMAT | 76% Closely correlated | +4.23% | ||
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TSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSM has been closely correlated with ASML. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TSM jumps, then ASML could also see price increases.
| Ticker / NAME | Correlation To TSM | 1D Price Change % | ||
|---|---|---|---|---|
| TSM | 100% | +1.20% | ||
| ASML - TSM | 74% Closely correlated | -0.02% | ||
| LRCX - TSM | 73% Closely correlated | +5.27% | ||
| KLAC - TSM | 71% Closely correlated | +3.70% | ||
| AMAT - TSM | 71% Closely correlated | +3.74% | ||
| CAMT - TSM | 66% Closely correlated | +0.22% | ||
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