Advertisement
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 operate in the semiconductor sector with strong exposure to artificial intelligence (AI) demand, yet they serve distinct roles in the supply chain.
- AMAT has seen multiple analyst price target increases in recent weeks amid robust equipment demand, contributing to significant year-to-date gains exceeding 135%.
- TSM reported record quarterly revenue driven by AI-related orders and is scheduled to release full second-quarter results on July 16, 2026, with shares up approximately 45% year-to-date.
- Relative performance shows both stocks trading near recent highs but experiencing volatility, with broader market sentiment tied to AI infrastructure spending and global chip production trends.
- Risk factors include cyclical semiconductor demand, geopolitical tensions affecting supply chains, and valuation levels following sharp rallies in both equities over the past year.
- Market positioning highlights AMAT as a beneficiary of capital expenditure cycles and TSM as the leading contract manufacturer with advanced process technology advantages.
Introduction
This comparison examines AMAT and TSM to provide traders and investors with a clear view of their relative positioning in the current semiconductor environment. The analysis focuses on business models, recent stock behavior, and key market influences over recent weeks and broader periods. It is relevant for those evaluating exposure to AI-driven growth, supply chain dynamics, and equipment versus manufacturing segments within the technology sector. Readers seeking objective data on performance contrasts and sector trends will find this overview useful for informed decision-making.
AMAT Overview and Recent Performance
Applied Materials, Inc. (AMAT) designs and manufactures equipment used in semiconductor fabrication, serving foundries and chipmakers worldwide. In recent market activity, the stock has exhibited strong upward momentum, with year-to-date returns surpassing 135% as of early July 2026. Multiple analyst firms raised price targets in the first half of July, citing sustained demand for AI-related manufacturing tools. Performance has been influenced by positive commentary from company leadership on the longevity of AI chip demand and broader capital spending trends in the sector. The shares have traded near 52-week highs while showing sensitivity to broader market rotations in technology names.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company Limited (TSM) operates as the world’s largest contract chip manufacturer, producing wafers for leading semiconductor designers. Recent performance reflects continued strength from AI applications, with the stock posting approximately 45% year-to-date gains through July 10, 2026. Record revenue figures for the second quarter, released in preliminary form, underscore robust order flow. The company is set to provide detailed earnings on July 16, 2026. Sentiment has been supported by capacity expansion efforts and global manufacturing initiatives, though shares have fluctuated in line with overall semiconductor volatility and upcoming results expectations.
Trending AI Robots
Tickeron’s Trending AI Robots page curates a selection of high-performing automated trading systems from hundreds of AI trading bots available across thousands of tickers. Only those demonstrating the strongest alignment with prevailing market conditions earn placement in this focused section. Available bots span diverse trading styles, strategies, timeframes, and performance statistics, with ranges reflecting varied risk-reward profiles and ticker coverage. Users can review detailed metrics on historical results, drawdowns, and win rates to identify suitable options. This resource offers a data-driven way to explore algorithmic approaches. Explore the full selection on the Trending AI Robots page.
Head-to-Head Comparison
AMAT functions as an equipment supplier, benefiting directly from semiconductor manufacturers’ capital expenditures on new fabrication capacity, while TSM serves as the primary foundry executing wafer production at scale. Growth drivers for AMAT center on tool innovation for advanced nodes and packaging, whereas TSM leverages process technology leadership and global footprint expansion. Recent momentum has favored AMAT through a cluster of upward analyst revisions, contrasted with TSM’s focus on earnings visibility ahead of its July report. Risk factors for both include cyclical industry swings and supply-chain dependencies, though TSM carries additional geographic considerations. Sector exposure remains aligned with AI and high-performance computing, with market sentiment reflecting optimism tempered by valuation considerations following multi-month rallies.
Tickeron AI Verdict
Based on observable factors such as trend consistency in equipment demand, earnings visibility for the foundry segment, and relative stability in order flows, Tickeron’s AI would likely assign a modest probabilistic edge to TSM in the current environment. This reflects its direct positioning in AI chip production and upcoming earnings catalyst, though both equities demonstrate comparable strengths tied to broader semiconductor expansion. The assessment remains conditional on evolving market data and does not constitute investment guidance.
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 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 3 TA indicator(s) are bullish while TSM’s TA Score has 3 bullish TA indicator(s).
- AMAT’s TA Score: 3 bullish, 5 bearish.
- TSM’s TA Score: 3 bullish, 5 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -0.09% price change this week, while TSM (@Semiconductors) price change was -0.01% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -6.05%. For the same industry, the average monthly price growth was -16.45%, and the average quarterly price growth was +59.38%.
The average weekly price growth across all stocks in the @Semiconductors industry was -5.75%. For the same industry, the average monthly price growth was -11.64%, and the average quarterly price growth was +53.13%.
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 (-6.05% 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 (-5.75% 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 | 478B | 1.96T | 24% |
| EBITDA | 11.1B | 2.99T | 0% |
| Gain YTD | 135.029 | 44.320 | 305% |
| P/E Ratio | 56.68 | 37.73 | 150% |
| Revenue | 29B | 4.1T | 1% |
| Total Cash | 8.24B | N/A | - |
| Total Debt | 7.27B | N/A | - |
AMAT | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 77 Overvalued | 65 Fair valued | |
PROFIT vs RISK RATING 1..100 | 13 | 4 | |
SMR RATING 1..100 | 24 | 27 | |
PRICE GROWTH RATING 1..100 | 2 | 39 | |
P/E GROWTH RATING 1..100 | 7 | 21 | |
SEASONALITY SCORE 1..100 | 85 | 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 (77) 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 (13) 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 (27) 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 (39) 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 (7) in the Electronic Production Equipment industry is in the same range as TSM (21) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TSM’s over the last 12 months.
| AMAT | TSM | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 60% | 7 days ago 65% |
| Stochastic ODDS (%) | 4 days ago 81% | 4 days ago 74% |
| Momentum ODDS (%) | 4 days ago 67% | 4 days ago 68% |
| MACD ODDS (%) | 4 days ago 61% | 4 days ago 67% |
| TrendWeek ODDS (%) | 4 days ago 64% | 4 days ago 65% |
| TrendMonth ODDS (%) | 4 days ago 78% | 4 days ago 77% |
| Advances ODDS (%) | 4 days ago 78% | 14 days ago 72% |
| Declines ODDS (%) | 12 days ago 64% | 4 days ago 62% |
| BollingerBands ODDS (%) | 4 days ago 65% | 4 days ago 56% |
| Aroon ODDS (%) | 4 days ago 75% | 4 days ago 78% |
Advertisement
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 89% 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% | +2.35% | ||
| LRCX - AMAT | 89% Closely correlated | -0.80% | ||
| KLAC - AMAT | 87% Closely correlated | +0.88% | ||
| NVMI - AMAT | 79% Closely correlated | +0.40% | ||
| ASML - AMAT | 79% Closely correlated | -0.38% | ||
| QCOM - AMAT | 75% Closely correlated | -1.02% | ||
More | ||||
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% | -0.65% | ||
| ASML - TSM | 74% Closely correlated | -0.38% | ||
| LRCX - TSM | 73% Closely correlated | -0.80% | ||
| KLAC - TSM | 71% Closely correlated | +0.88% | ||
| AMAT - TSM | 71% Closely correlated | +2.35% | ||
| CAMT - TSM | 66% Closely correlated | -1.08% | ||
More | ||||