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AMAT vs UMC
Which Stock Would AI Choose? Applied Materials (AMAT) vs. United Microelectronics (UMC) Stock Comparison
Key Takeaways
- AMAT has delivered stronger year-to-date gains of approximately 62%, outpacing UMC's 54% rise, amid robust semiconductor demand.
- AMAT, a leading semiconductor equipment provider, boasts a market cap over $331 billion, dwarfing UMC's $31 billion.
- Both stocks have surged in recent market activity, with AMAT up nearly 180% over the past year and UMC gaining about 77%.
- AI-driven demand bolsters AMAT's growth, while UMC benefits from mature-node strength and partnerships.
- AMAT trades at a higher P/E ratio (price-to-earnings) of 42.7 versus UMC's 23.2, reflecting premium valuation for its scale.
Introduction
In the surging semiconductor sector, fueled by artificial intelligence and computing demands, AMAT and UMC represent distinct plays for investors. Applied Materials dominates equipment manufacturing essential for chip production, while United Microelectronics focuses on wafer foundry services, particularly in mature and specialty nodes. This stock comparison analyzes their recent performance, business models, and market positioning. Traders eyeing sector momentum and long-term investors seeking relative value will find insights into how these stocks stack up amid volatile chip cycles and geopolitical influences.
AMAT Overview and Recent Performance
Applied Materials (AMAT) is a global leader in materials engineering solutions for semiconductors, providing equipment for deposition, etching, and inspection used by chipmakers worldwide. In recent market activity, AMAT shares have shown robust momentum, closing around $417 with a 52-week range of $145 to $421 and year-to-date gains exceeding 62%. The stock has climbed nearly 180% over the past year, driven by AI computing demand and strong Q1 2026 results in February, where revenue hit $7.01 billion—beating estimates—and EPS reached $2.38. Sentiment remains positive amid sector tailwinds, though elevated valuations and supply chain risks temper gains in recent weeks.
UMC Overview and Recent Performance
United Microelectronics Corporation (UMC) operates as a pure-play semiconductor foundry, fabricating wafers for clients in communications, IoT, automotive, and computing. Recently, UMC shares traded near $12.28, with a 52-week range of $6.56 to $12.82 and YTD returns around 54%. The stock surged over 9% in recent weeks ahead of March sales data and dividends, reflecting improved utilization and full-year 2025 shipment growth of 12.3%. Partnerships in photonics and hybrid bonding have boosted outlook, with Q1 2026 results pending; steady demand for mature nodes supports resilience despite Taiwan exposure.
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Head-to-Head Comparison
AMAT and UMC both thrive in semiconductors but differ in models: AMAT supplies capital equipment with high margins (27.8% profit margin), while UMC offers foundry services emphasizing cost efficiency (17.6% margin). Growth drivers favor AMAT's AI exposure versus UMC's mature-node stability. Recent momentum is strong for both, but AMAT's larger scale yields superior returns. Risks include cyclical downturns for AMAT and geopolitical tensions for Taiwan-based UMC. Market sentiment tilts toward AMAT on valuation premiums, though UMC offers relative value.
Tickeron AI Verdict
Tickeron's AI models currently lean toward AMAT, citing consistent upward trends, superior relative performance, and inclusion in high-performing trending bots amid AI catalysts. UMC shows promise in steady demand but trails in momentum and scale. Probabilistic edge favors AMAT for near-term positioning, subject to sector dynamics.
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 UMC 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 whileUMC’s FA Score has 2 green FA rating(s).
- AMAT’s FA Score: 4 green, 1 red.
- UMC’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 4 TA indicator(s) are bullish while UMC’s TA Score has 4 bullish TA indicator(s).
- AMAT’s TA Score: 4 bullish, 3 bearish.
- UMC’s TA Score: 4 bullish, 4 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а +3.11% price change this week, while UMC (@Semiconductors) price change was +21.18% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.08%. For the same industry, the average monthly price growth was +8.47%, and the average quarterly price growth was +128.49%.
The average weekly price growth across all stocks in the @Semiconductors industry was -0.06%. For the same industry, the average monthly price growth was -2.25%, and the average quarterly price growth was +92.80%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
UMC is expected to report earnings on Jul 29, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.08% 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 (-0.06% 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 | UMC | AMAT / UMC | |
| Capitalization | 465B | 67.2B | 692% |
| EBITDA | 11.1B | 118B | 9% |
| Gain YTD | 128.546 | 233.333 | 55% |
| P/E Ratio | 60.22 | 44.20 | 136% |
| Revenue | 29B | 241B | 12% |
| Total Cash | 8.24B | 134B | 6% |
| Total Debt | 7.27B | 56.7B | 13% |
AMAT | UMC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 45 | 24 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 78 Overvalued | 54 Fair valued | |
PROFIT vs RISK RATING 1..100 | 5 | 5 | |
SMR RATING 1..100 | 24 | 65 | |
PRICE GROWTH RATING 1..100 | 2 | 34 | |
P/E GROWTH RATING 1..100 | 5 | 5 | |
SEASONALITY SCORE 1..100 | 50 | 44 |
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.
UMC's Valuation (54) in the Semiconductors industry is in the same range as AMAT (78) in the Electronic Production Equipment industry. This means that UMC’s stock grew similarly to AMAT’s over the last 12 months.
UMC's Profit vs Risk Rating (5) in the Semiconductors industry is in the same range as AMAT (5) in the Electronic Production Equipment industry. This means that UMC’s stock grew similarly to AMAT’s over the last 12 months.
AMAT's SMR Rating (24) in the Electronic Production Equipment industry is somewhat better than the same rating for UMC (65) in the Semiconductors industry. This means that AMAT’s stock grew somewhat faster than UMC’s over the last 12 months.
AMAT's Price Growth Rating (2) in the Electronic Production Equipment industry is in the same range as UMC (34) in the Semiconductors industry. This means that AMAT’s stock grew similarly to UMC’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 UMC (5) in the Semiconductors industry. This means that AMAT’s stock grew similarly to UMC’s over the last 12 months.
| AMAT | UMC | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 65% | 2 days ago 61% |
| Stochastic ODDS (%) | 2 days ago 69% | 2 days ago 56% |
| Momentum ODDS (%) | 2 days ago 74% | 2 days ago 68% |
| MACD ODDS (%) | 2 days ago 77% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 76% | 2 days ago 69% |
| TrendMonth ODDS (%) | 2 days ago 77% | 2 days ago 67% |
| Advances ODDS (%) | 2 days ago 76% | 2 days ago 63% |
| Declines ODDS (%) | N/A | 14 days ago 61% |
| BollingerBands ODDS (%) | 2 days ago 65% | 2 days ago 61% |
| Aroon ODDS (%) | 2 days ago 75% | 2 days ago 71% |
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