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AMAT vs UMC
Which Stock Would AI Choose? Applied Materials (AMAT) vs. United Microelectronics (UMC) Stock Comparison
Key Takeaways
- AMAT and UMC both operate in the semiconductor industry but serve distinct roles, with AMAT focused on manufacturing equipment and UMC on foundry services.
- Recent market activity shows both stocks experiencing volatility amid broader semiconductor sector movements tied to AI demand and earnings expectations.
- AMAT has demonstrated stronger year-to-date gains compared to UMC, reflecting its direct exposure to advanced chip production tools.
- UMC has reported consistent revenue growth in recent months and maintains a focus on specialty processes and capacity expansions.
- Sector sentiment remains influenced by AI-related investments, with analysts highlighting growth catalysts for equipment providers like AMAT.
- Upcoming earnings releases for both companies in late July and August provide key data points for assessing relative momentum.
Introduction
This comparison examines Applied Materials (AMAT) and United Microelectronics (UMC), two semiconductor-related stocks with different positions in the value chain. AMAT supplies equipment used in chip fabrication, while UMC provides contract manufacturing services as a foundry. The analysis targets traders and investors seeking to understand relative performance, business drivers, and market positioning within the current semiconductor environment. It draws on observable price behavior, recent developments, and sector trends to highlight contrasts without favoring either security.
AMAT Overview and Recent Performance
Applied Materials (AMAT) designs and manufactures equipment for semiconductor production, including deposition, etching, and inspection systems critical for advanced nodes. In recent weeks, the stock has shown significant volatility following a period of strong gains driven by AI-related demand for chipmaking tools. Year-to-date returns have exceeded 100%, with the share price reaching highs near $740 in late June before pulling back amid broader market rotations. Recent analyst activity includes multiple price target increases, reflecting optimism around sustained AI investment cycles. Upcoming fiscal third-quarter results scheduled for August 13 will offer further insight into order trends and margin performance.
UMC Overview and Recent Performance
United Microelectronics (UMC) operates as a dedicated semiconductor foundry, producing wafers for clients across logic, specialty, and power applications. Recent market activity has featured revenue growth in monthly reports, with June sales rising over 20% year-over-year amid capacity utilization improvements. The stock has delivered substantial gains over the past year, though it has traded with notable swings tied to earnings expectations and sector sentiment. UMC is scheduled to report second-quarter results on July 29, with forecasts pointing to continued focus on specialty processes and partnerships. Management has highlighted conservative financial positioning alongside ongoing capacity and technology investments.
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Head-to-Head Comparison
Applied Materials (AMAT) and United Microelectronics (UMC) differ fundamentally in their business models: AMAT supplies capital equipment essential for chip production, while UMC provides foundry manufacturing services. Growth drivers for AMAT center on demand for advanced process tools supporting AI and high-performance computing, whereas UMC benefits from specialty semiconductor orders and foundry capacity utilization. Recent momentum has favored AMAT with higher year-to-date appreciation amid equipment spending cycles, though both have faced short-term pullbacks. Risk factors include cyclical industry exposure for AMAT and competition plus geopolitical considerations for UMC’s Taiwan-based operations. Market sentiment reflects broader AI enthusiasm, with equipment providers often showing earlier and more pronounced reactions to sector catalysts than foundries.
Tickeron AI Verdict
Based on observable factors such as trend consistency and exposure to AI-driven equipment demand, Tickeron’s AI would currently assign a higher probabilistic preference to Applied Materials (AMAT) over United Microelectronics (UMC). AMAT’s positioning in the semiconductor equipment segment has aligned with sustained investment themes, supporting more stable recent performance patterns relative to foundry peers. UMC offers complementary exposure through manufacturing services and has shown revenue resilience, yet its profile reflects greater variability tied to client orders and capacity dynamics. This assessment remains probabilistic and subject to evolving market data, including upcoming earnings.
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 Buy 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 2 FA rating(s) are green whileUMC’s FA Score has 1 green FA rating(s).
- AMAT’s FA Score: 2 green, 3 red.
- UMC’s FA Score: 1 green, 4 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, 6 bearish.
- UMC’s TA Score: 4 bullish, 6 bearish.
Price Growth
AMAT (@Electronic Production Equipment) experienced а -5.33% price change this week, while UMC (@Semiconductors) price change was -2.31% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -2.84%. For the same industry, the average monthly price growth was -21.76%, and the average quarterly price growth was +42.97%.
The average weekly price growth across all stocks in the @Semiconductors industry was -2.82%. For the same industry, the average monthly price growth was -18.21%, and the average quarterly price growth was +36.18%.
Reported Earning Dates
AMAT is expected to report earnings on Aug 13, 2026.
UMC is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Electronic Production Equipment (-2.84% 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 (-2.82% 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 | 403B | 46.8B | 861% |
| EBITDA | 11.1B | 155B | 7% |
| Gain YTD | 98.037 | 146.373 | 67% |
| P/E Ratio | 47.76 | 18.70 | 255% |
| Revenue | 29B | 251B | 12% |
| Total Cash | 8.24B | 147B | 6% |
| Total Debt | 7.27B | 54.3B | 13% |
AMAT | UMC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 61 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 38 Fair valued | |
PROFIT vs RISK RATING 1..100 | 38 | 41 | |
SMR RATING 1..100 | 25 | 45 | |
PRICE GROWTH RATING 1..100 | 36 | 36 | |
P/E GROWTH RATING 1..100 | 8 | 16 | |
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.
UMC's Valuation (38) in the Semiconductors industry is somewhat better than the same rating for AMAT (71) in the Electronic Production Equipment industry. This means that UMC’s stock grew somewhat faster than AMAT’s over the last 12 months.
AMAT's Profit vs Risk Rating (38) in the Electronic Production Equipment industry is in the same range as UMC (41) in the Semiconductors industry. This means that AMAT’s stock grew similarly to UMC’s over the last 12 months.
AMAT's SMR Rating (25) in the Electronic Production Equipment industry is in the same range as UMC (45) in the Semiconductors industry. This means that AMAT’s stock grew similarly to UMC’s over the last 12 months.
AMAT's Price Growth Rating (36) in the Electronic Production Equipment industry is in the same range as UMC (36) 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 (8) in the Electronic Production Equipment industry is in the same range as UMC (16) in the Semiconductors industry. This means that AMAT’s stock grew similarly to UMC’s over the last 12 months.
| AMAT | UMC | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 85% | 4 days ago 73% |
| Stochastic ODDS (%) | 4 days ago 81% | 4 days ago 70% |
| Momentum ODDS (%) | 4 days ago 73% | 4 days ago 57% |
| MACD ODDS (%) | 4 days ago 71% | 4 days ago 60% |
| TrendWeek ODDS (%) | 4 days ago 64% | 4 days ago 63% |
| TrendMonth ODDS (%) | 4 days ago 66% | 4 days ago 63% |
| Advances ODDS (%) | 4 days ago 78% | 4 days ago 63% |
| Declines ODDS (%) | 6 days ago 64% | 6 days ago 62% |
| BollingerBands ODDS (%) | 4 days ago 83% | 4 days ago 65% |
| Aroon ODDS (%) | 4 days ago 71% | 4 days ago 51% |
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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 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% | +1.18% | ||
| LRCX - AMAT | 89% Closely correlated | -1.58% | ||
| KLAC - AMAT | 87% Closely correlated | +1.38% | ||
| ONTO - AMAT | 81% Closely correlated | +3.22% | ||
| NVMI - AMAT | 81% Closely correlated | -0.81% | ||
| ASML - AMAT | 80% Closely correlated | -1.36% | ||
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UMC and
Correlation & Price change
A.I.dvisor indicates that over the last year, UMC has been loosely correlated with GFS. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if UMC jumps, then GFS could also see price increases.
| Ticker / NAME | Correlation To UMC | 1D Price Change % | ||
|---|---|---|---|---|
| UMC | 100% | +0.48% | ||
| GFS - UMC | 58% Loosely correlated | +0.20% | ||
| LRCX - UMC | 58% Loosely correlated | -1.58% | ||
| KLAC - UMC | 57% Loosely correlated | +1.38% | ||
| AMAT - UMC | 55% Loosely correlated | +1.18% | ||
| ASX - UMC | 54% Loosely correlated | +1.15% | ||
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