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AMAT vs TXN
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- AMAT operates in semiconductor production equipment, while TXN focuses on analog semiconductors, leading to distinct exposure to AI-driven demand versus broader industrial and automotive cycles.
- As of mid-July 2026, AMAT reported a year-to-date return exceeding 106%, significantly outpacing broader market benchmarks, amid multiple analyst price target increases.
- TXN maintains a lower market capitalization (approximately $283 billion versus AMAT’s $478 billion) and offers greater diversification across end markets.
- Recent market activity shows AMAT experiencing higher volatility tied to semiconductor equipment cycles, contrasted with TXN’s relatively steadier profile.
- Both companies benefit from semiconductor sector tailwinds, yet AMAT demonstrates stronger recent momentum linked to AI infrastructure investments.
- Risk factors differ: AMAT faces equipment spending fluctuations, while TXN contends with inventory adjustments in analog segments.
Introduction
This comparison examines AMAT and TXN, two established semiconductor companies with complementary yet differentiated business models. Applied Materials supplies equipment essential for chip fabrication, while Texas Instruments produces analog and embedded semiconductors used across multiple industries. The analysis is relevant for investors and traders seeking to understand relative performance, sector positioning, and market dynamics within the broader technology landscape during the current environment of evolving semiconductor demand.
AMAT Overview and Recent Performance
Applied Materials provides manufacturing equipment, services, and software for the semiconductor, display, and related industries. In recent market activity, the stock has demonstrated robust gains, with year-to-date returns surpassing 106% as of mid-July 2026. The company reported record second-quarter 2026 revenue of $7.91 billion, supported by strong demand for advanced chip-making tools. Recent weeks featured multiple upward revisions to price targets by analysts, reflecting positive sentiment around AI-related capital expenditures. Performance has been influenced by broader semiconductor sector movements, including periods of pullback amid market rotations, yet overall momentum remains tied to long-term technology infrastructure trends.
TXN Overview and Recent Performance
Texas Instruments designs and manufactures analog semiconductors, embedded processors, and other components serving automotive, industrial, personal electronics, and communications markets. The company’s market capitalization stands at approximately $283 billion. In recent market activity, TXN has shown solid but comparatively moderated gains relative to equipment peers, benefiting from diversified end-market exposure. Performance reflects steady demand in industrial and automotive segments alongside typical semiconductor inventory cycles. Sentiment has been shaped by macroeconomic factors affecting broader electronics spending, with the stock exhibiting lower volatility than some pure-play AI-exposed names in recent periods.
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Head-to-Head Comparison
AMAT and TXN differ markedly in business models: the former supplies capital equipment critical for chip production, creating leveraged exposure to industry capacity expansions, while the latter delivers analog components with more stable, recurring revenue streams across diverse sectors. Growth drivers for AMAT center on advanced process nodes and AI infrastructure buildout, contributing to stronger recent momentum. TXN benefits from automotive electrification and industrial automation but faces slower cyclical recovery in certain segments. Risk profiles reflect these differences, with AMAT more sensitive to equipment order variability and TXN exposed to end-market demand fluctuations. Market sentiment currently favors equipment names amid AI enthusiasm, though TXN offers potential defensive characteristics through its broader portfolio.
Tickeron AI Verdict
Based on observable factors including stronger trend consistency in recent market activity, prominent AI-related catalysts, and relative positioning within the semiconductor equipment space, Tickeron’s AI would currently assign a higher probabilistic preference to AMAT over TXN. This assessment draws from comparative momentum indicators and sector tailwinds without implying certainty or future outcomes.
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 TXN is a Buy.
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 3 FA rating(s) are green whileTXN’s FA Score has 3 green FA rating(s).
- AMAT’s FA Score: 3 green, 2 red.
- TXN’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 TXN’s TA Score has 2 bullish TA indicator(s).
- AMAT’s TA Score: 3 bullish, 6 bearish.
- TXN’s TA Score: 2 bullish, 7 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -1.68% price change this week, while TXN (@Semiconductors) price change was -1.64% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -17.21%. For the same industry, the average monthly price growth was -24.78%, and the average quarterly price growth was +24.89%.
The average weekly price growth across all stocks in the @Semiconductors industry was -12.68%. For the same industry, the average monthly price growth was -18.15%, and the average quarterly price growth was +25.36%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
TXN is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Electronic Production Equipment (-17.21% 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 (-12.68% 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 | TXN | AMAT / TXN | |
| Capitalization | 410B | 255B | 161% |
| EBITDA | 11.1B | 8.82B | 126% |
| Gain YTD | 101.634 | 62.927 | 162% |
| P/E Ratio | 48.63 | 42.46 | 115% |
| Revenue | 29B | 18.4B | 158% |
| Total Cash | 8.24B | 5.1B | 161% |
| Total Debt | 7.27B | 14B | 52% |
AMAT | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 61 | 62 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 77 Overvalued | 71 Overvalued | |
PROFIT vs RISK RATING 1..100 | 26 | 31 | |
SMR RATING 1..100 | 24 | 31 | |
PRICE GROWTH RATING 1..100 | 36 | 43 | |
P/E GROWTH RATING 1..100 | 10 | 32 | |
SEASONALITY SCORE 1..100 | 90 | 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.
TXN's Valuation (71) in the Semiconductors industry is in the same range as AMAT (77) in the Electronic Production Equipment industry. This means that TXN’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's Profit vs Risk Rating (26) in the Electronic Production Equipment industry is in the same range as TXN (31) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TXN’s over the last 12 months.
AMAT's SMR Rating (24) in the Electronic Production Equipment industry is in the same range as TXN (31) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TXN’s over the last 12 months.
AMAT's Price Growth Rating (36) in the Electronic Production Equipment industry is in the same range as TXN (43) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TXN’s over the last 12 months.
AMAT's P/E Growth Rating (10) in the Electronic Production Equipment industry is in the same range as TXN (32) in the Semiconductors industry. This means that AMAT’s stock grew similarly to TXN’s over the last 12 months.
| AMAT | TXN | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 67% | N/A |
| Stochastic ODDS (%) | 1 day ago 81% | 1 day ago 66% |
| Momentum ODDS (%) | 1 day ago 71% | 1 day ago 67% |
| MACD ODDS (%) | 1 day ago 71% | 1 day ago 67% |
| TrendWeek ODDS (%) | 1 day ago 64% | 1 day ago 61% |
| TrendMonth ODDS (%) | 1 day ago 66% | 1 day ago 58% |
| Advances ODDS (%) | 19 days ago 78% | 7 days ago 59% |
| Declines ODDS (%) | 1 day ago 64% | 1 day ago 58% |
| BollingerBands ODDS (%) | 1 day ago 46% | 7 days ago 64% |
| Aroon ODDS (%) | 1 day ago 79% | 1 day ago 64% |
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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHPP. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHPP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | -0.06% | ||
| MCHPP - TXN | 79% Closely correlated | -0.65% | ||
| MCHP - TXN | 79% Closely correlated | -1.22% | ||
| ADI - TXN | 78% Closely correlated | +0.01% | ||
| ON - TXN | 69% Closely correlated | +2.57% | ||
| LRCX - TXN | 68% Closely correlated | -4.46% | ||
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