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AMAT vs UCTT
Which Stock Would AI Choose? Applied Materials (AMAT) vs. Ultra Clean Holdings (UCTT) Stock Comparison
Key Takeaways
- Scale contrast: Applied Materials (AMAT) is a large-cap wafer fab equipment (WFE) leader, while Ultra Clean Holdings (UCTT) is a small-cap supplier of subsystems and cleaning services that counts AMAT among its key customers.
- Divergent momentum: Both stocks have pulled back in recent weeks after strong year-to-date gains, but UCTT remains far more volatile, with a beta of roughly 1.86 versus AMAT's steadier profile.
- Profitability gap: AMAT reports solid GAAP and non-GAAP profitability, while UCTT recently posted a net loss even as revenue grew.
- AI-driven demand: Both companies are tied to artificial intelligence (AI), high-bandwidth memory (HBM), and advanced packaging spending, but AMAT captures the higher-margin equipment layer of the supply chain.
- Sentiment check: AMAT faces near-term uncertainty after an investor day that omitted a WFE forecast, while UCTT has seen sharp estimate revisions alongside insider selling.
Introduction
Semiconductor manufacturing has become one of the most closely watched corners of the equity market as investors position for a multi-year AI infrastructure buildout. Comparing AMAT and UCTT offers a useful lens on two very different ways to gain exposure to that theme. AMAT is a dominant supplier of the tools used to fabricate chips, while UCTT supplies the subsystems, components, and ultra-high purity cleaning services that support those same tools. This stock comparison is most relevant for investors weighing relative performance, market positioning, and risk across the large-cap and small-cap segments of the semiconductor equipment ecosystem.
AMAT Overview and Recent Performance
Applied Materials (AMAT) is a global leader in materials engineering solutions and wafer fab equipment, providing deposition, etch, metrology, and advanced packaging tools used to manufacture virtually every advanced semiconductor. In recent market activity, the stock has cooled sharply after a strong run, trading well below its 52-week high even as it retains a substantial year-to-date advance.
The pullback followed an investor event in which management outlined long-term growth targets—including higher gross and operating margin goals and ambitions to gain WFE market share—but did not provide a specific near-term wafer fab equipment spending forecast. That omission weighed on sentiment across the semiconductor equipment sector, and AMAT extended a multi-day losing streak. Fundamentally, the company continues to benefit from AI-driven demand in leading-edge logic, DRAM, and advanced packaging, and it recently raised its quarterly dividend, underscoring management's confidence in cash generation.
UCTT Overview and Recent Performance
Ultra Clean Holdings (UCTT) develops and supplies critical subsystems, components, parts, and ultra-high purity cleaning and analytical services primarily for the semiconductor industry. It serves leading equipment makers, positioning it as a leveraged, lower-cost way to participate in the wafer fab equipment cycle. The stock has delivered an outsized year-to-date gain, far outpacing the broader industry, but that momentum has cooled considerably in recent weeks amid a sector-wide chip-equipment sell-off.
UCTT has been expanding its manufacturing footprint in Malaysia, Singapore, and the Czech Republic, with management targeting a meaningfully larger annualized revenue capacity by mid-2027. However, its recent financial results show modest year-over-year revenue growth and a net loss, reflecting thin margins and heavy operating costs. Analyst price targets remain well above the current price, and consensus earnings estimates have risen sharply, though insider selling activity has tempered some of the enthusiasm.
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Head-to-Head Comparison
Although both companies sit within the semiconductor supply chain, their business models and risk profiles differ materially. AMAT sells high-margin capital equipment directly to chipmakers and operates a growing services segment, giving it scale, pricing power, and diversified revenue. UCTT occupies a lower-margin supplier role, providing outsourced subsystems and cleaning services to equipment makers—including AMAT itself—which makes it more sensitive to order timing and factory utilization.
On recent momentum, both stocks have retreated from highs, but UCTT's beta and wider 52-week trading range reflect considerably higher volatility. AMAT offers stronger profitability and a dividend, while UCTT trades at a lower price-to-sales multiple relative to many semiconductor peers and carries a higher growth-oriented analyst consensus. Risk factors also differ: AMAT faces concentration and geopolitical exposure in key regions, whereas UCTT contends with thin margins, negative cash generation in certain periods, and meaningful debt relative to its size.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor AMAT on measures of trend consistency and fundamental stability, given its larger scale, established profitability, and steadier price behavior. At the same time, the AI could recognize UCTT as a higher-momentum, higher-risk candidate when upward revisions and WFE upcycle expectations dominate. In probabilistic terms, AMAT currently presents the more consistent, lower-volatility positioning, while UCTT offers greater upside sensitivity but a wider distribution of potential outcomes tied to the timing of the equipment cycle.
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 UCTT 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 30 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 86%.
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.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 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.
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 10 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 71%.
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 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%.
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 31 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
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.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 17 (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 45 (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 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
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 (12.675) is normal, around the industry mean (6.849). P/E Ratio (35.042) is within average values for comparable stocks, (85.952). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.005) settles around the average of (0.008) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
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.
UCTT in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 12, 2026
UCTT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 39 cases where UCTT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 87%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 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 +3.83% 3-day Advance, the price is estimated to grow further. Considering data from situations where UCTT advanced for three days, in 230 of 309 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
The Aroon Indicator entered an Uptrend today. In 228 of 263 cases where UCTT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 87%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on UCTT as a result. In 77 of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for UCTT turned negative on October 08, 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 39 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
UCTT moved below its 50-day moving average on October 02, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UCTT crossed bearishly below the 50-day moving average on October 08, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 17 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 76%.
The 50-day moving average for UCTT moved below the 200-day moving average on October 16, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UCTT 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 73%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (3.609) is normal, around the industry mean (6.849). P/E Ratio (-102.000) is within average values for comparable stocks, (85.952). Projected Growth (PEG Ratio) (0.353) is also within normal values, averaging (0.801). Dividend Yield (0.000) settles around the average of (0.008) among similar stocks. P/S Ratio (1.374) is also within normal values, averaging (27.897).
The Tickeron PE Growth Rating for this company is 13 (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 Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. UCTT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 93 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UCTT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
AMAT | UCTT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 76 Overvalued | 8 Undervalued | |
PROFIT vs RISK RATING 1..100 | 50 | 93 | |
SMR RATING 1..100 | 25 | 92 | |
PRICE GROWTH RATING 1..100 | 45 | 64 | |
P/E GROWTH RATING 1..100 | 17 | 13 | |
SEASONALITY SCORE 1..100 | 90 | n/a |
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.
UCTT's Valuation (8) in the Electronic Production Equipment industry is significantly better than the same rating for AMAT (76). This means that UCTT’s stock grew significantly faster than AMAT’s over the last 12 months.
AMAT's Profit vs Risk Rating (50) in the Electronic Production Equipment industry is somewhat better than the same rating for UCTT (93). This means that AMAT’s stock grew somewhat faster than UCTT’s over the last 12 months.
AMAT's SMR Rating (25) in the Electronic Production Equipment industry is significantly better than the same rating for UCTT (92). This means that AMAT’s stock grew significantly faster than UCTT’s over the last 12 months.
AMAT's Price Growth Rating (45) in the Electronic Production Equipment industry is in the same range as UCTT (64). This means that AMAT’s stock grew similarly to UCTT’s over the last 12 months.
UCTT's P/E Growth Rating (13) in the Electronic Production Equipment industry is in the same range as AMAT (17). This means that UCTT’s stock grew similarly to AMAT’s over the last 12 months.
| AMAT | UCTT | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 79% | 3 days ago 85% |
| Stochastic ODDS (%) | 3 days ago 75% | 3 days ago 81% |
| Momentum ODDS (%) | 3 days ago 71% | 3 days ago 81% |
| MACD ODDS (%) | 3 days ago 69% | 3 days ago 80% |
| TrendWeek ODDS (%) | 3 days ago 67% | 3 days ago 78% |
| TrendMonth ODDS (%) | 3 days ago 70% | 3 days ago 80% |
| Advances ODDS (%) | 14 days ago 79% | 19 days ago 74% |
| Declines ODDS (%) | 3 days ago 66% | 3 days ago 73% |
| BollingerBands ODDS (%) | 3 days ago 86% | 3 days ago 87% |
| Aroon ODDS (%) | 3 days ago 63% | 3 days ago 87% |
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 UCTT’s FA Score has 2 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- UCTT’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while UCTT’s TA Score has 5 bullish TA indicator(s).
- AMAT’s TA Score: 5 bullish, 5 bearish.
- UCTT’s TA Score: 5 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -19.28% price change this week, while UCTT (@Electronic Production Equipment) price change was -25.65% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -18.80%. For the same industry, the average monthly price growth was -9.62%, and the average quarterly price growth was -21.46%.
Reported Earning Dates
AMAT is expected to report earnings on Nov 12, 2026.
UCTT is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Electronic Production Equipment (-18.80% 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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UCTT and
Correlation & Price change
A.I.dvisor indicates that over the last year, UCTT has been closely correlated with ICHR. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if UCTT jumps, then ICHR could also see price increases.
| Ticker / NAME | Correlation To UCTT | 1D Price Change % | ||
|---|---|---|---|---|
| UCTT | 100% | -8.65% | ||
| ICHR - UCTT | 80% Closely correlated | -9.73% | ||
| ONTO - UCTT | 79% Closely correlated | -4.85% | ||
| COHU - UCTT | 77% Closely correlated | -7.45% | ||
| AMAT - UCTT | 77% Closely correlated | -4.82% | ||
| LRCX - UCTT | 76% Closely correlated | -4.87% | ||
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