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AMAT
Applied Materials, Inc. · Technology
$617.11
+51.66% this month
VERSUS
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COMPARE
KLAC
KLA Corporation · Technology
$259.56
+49.12% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
AMAT
4
KLAC
1
Comparison scoreboard
AMAT LEADS 4/5AI Score
AMAT ✓72.8
KLAC 39.2
1Y Return
AMAT ✓+254.48%
KLAC +190.66%
Fwd P/E
AMAT ✓34.89
KLAC 50.43
Target Up.
AMAT ✓-8.81%
KLAC -24.33%
Op. Margin
AMAT 31.90%
KLAC ✓41.22%
Metrics last refreshed: 6/20/2026
Quick take
AMAT vs KLAC Stock Comparison: AI Score, Valuation, Performance and Upside
Applied Materials and KLA Corporation are both semiconductor equipment leaders but with very different competitive positions. AMAT's breadth gives it the largest total revenue across all equipment categories, while KLA's depth in process control gives it a more defensible near-monopoly position with the highest gross margins in equipment. Investors choosing between them are picking breadth (AMAT) versus depth (KLA).
AMAT vs KLAC is a comparison of semiconductor equipment breadth (Applied Materials' multi-category presence) versus depth (KLA's near-monopoly process control moat) — AMAT grows with overall semiconductor investment cycles, while KLA grows structurally with technology complexity regardless of which equipment categories are growing.
Live analysis · updated 6/20/2026
AMAT holds the edge across 4 of 5 key metrics in this comparison. AMAT leads on both 1-year return (+254.48%) and forward P/E (34.89x vs 50.43x for KLAC), a relatively favorable combination of momentum and valuation. KLAC leads on both revenue growth (11.50%) and operating margin (41.22%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for AMAT (-8.81%) than for KLAC (-24.33%).
Normalized 1Y performance
AMAT
KLAC
Recent returns
AMAT
KLAC
Analyst price targets & sentiment
AMAT · 32 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.7/5.0)
Price target range
analyst low$152.00
analyst mean$517.28
current price$617.11
-8.8% upside to analyst mean
KLAC · 26 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.1/5.0)
Price target range
analyst high$900.00
analyst mean$192.62
current price$259.56
-24.3% upside to analyst mean
Who should consider this stock?
AMAT may suit investors who:
- →prefer the largest, most diversified semiconductor equipment company with full participation in all chip manufacturing categories
- →value materials-enabled transistor architecture transitions as a differentiated driver of content-per-wafer growth
- →want the broadest semiconductor equipment holding that benefits from any type of fab investment cycle
- →are comfortable with broader China exposure and competition from Tokyo Electron across all product lines
KLAC may suit investors who:
- →prefer the most defensible semiconductor equipment moat — near-monopoly process control with 60%+ gross margins
- →value structural process control intensity growth as semiconductor nodes become more complex requiring more inspection steps
- →want semiconductor equipment exposure with the lowest cyclicality and highest margin stability in the equipment sector
- →are comfortable with a more narrowly focused product portfolio in exchange for near-monopoly pricing power
Performance & AI score
| Metric | AMAT | KLAC |
|---|---|---|
| AI score | 72.8 | 39.2 |
| AI rank | #31 | #1179 |
| Latest close | $617.11 | $259.56 |
| 1M return | +51.66% | +49.12% |
| 6M return | +148.56% | +121.46% |
| 1Y return | +254.48% | +190.66% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AMAT | KLAC |
|---|---|---|
| 1Y ago | $35.7K (+257.0%) started 2025-06-18 | $29.79K (+197.9%) started 2025-06-18 |
| 5Y ago | $49.47K (+394.7%) started 2021-06-21 | $136.68K (+1266.8%) started 2021-06-21 |
| 10Y ago | $319.73K (+3097.3%) started 2016-06-20 | $2.16M (+21535.6%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | AMAT | KLAC |
|---|---|---|
| Market cap | $450.37B | $332.5B |
| Trailing P/E | 53.46 | 71.90 |
| Forward P/E | 34.89 | 50.43 |
| Price/Sales | 4.76 | 9.25 |
| EV/Revenue | 15.48 | 25.48 |
| Analyst target | $517.28 | $192.62 |
| Target upside | -8.81% | -24.33% |
Growth, profitability & risk
| Metric | AMAT | KLAC |
|---|---|---|
| Revenue growth | 11.40% | 11.50% |
| Earnings growth | 33.50% | 11.80% |
| EPS growth | +33.50% | +11.80% |
| FCF margin | +10.48% | +22.07% |
| Operating margin | 31.90% | 41.22% |
| Profit margin | 29.31% | 35.66% |
| ROIC proxy | 39.69% | 94.98% |
| Return on equity | 39.69% | 94.98% |
| Dividend yield | 0.37% | 0.36% |
| Beta | 1.67 | 1.50 |
| Debt/equity | 30.40 | 105.40 |
| Current ratio | 2.51 | 3.03 |
| Quick ratio | 1.62 | 1.96 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
AMAT max drawdown21.60%
KLAC max drawdown90.11%
AMAT max wkly drop15.30%
KLAC max wkly drop89.95%
5Y risk snapshot
AMAT max drawdown55.14%
KLAC max drawdown90.11%
AMAT max wkly drop16.59%
KLAC max wkly drop89.95%
10Y risk snapshot
AMAT max drawdown55.14%
KLAC max drawdown90.11%
AMAT max wkly drop25.36%
KLAC max wkly drop89.95%
Performance metrics by period
| Period | Metric | AMAT | KLAC |
|---|---|---|---|
| 1Y | Growth | +257.04% | +197.95% |
| CAGR | +257.69% | +198.41% | |
| Sharpe ratio | 2.75 | 1.01 | |
| Max drawdown | 21.60% | 90.11% | |
| Max daily drop | 14.07% | 89.07% | |
| Max wkly drop | 15.30% | 89.95% | |
| 5Y | Growth | +378.89% | +778.56% |
| CAGR | +36.85% | +54.54% | |
| Sharpe ratio | 0.83 | 0.51 | |
| Max drawdown | 55.14% | 90.11% | |
| Max daily drop | 14.07% | 89.07% | |
| Max wkly drop | 16.59% | 89.95% | |
| 10Y | Growth | +2783.05% | +4028.09% |
| CAGR | +39.98% | +45.10% | |
| Sharpe ratio | 0.90 | 0.41 | |
| Max drawdown | 55.14% | 90.11% | |
| Max daily drop | 20.36% | 89.07% | |
| Max wkly drop | 25.36% | 89.95% |
Business comparison
| Category | AMAT | KLAC |
|---|---|---|
| Company | Applied Materials, Inc. | KLA Corporation |
| Sector | Technology | Technology |
| Industry | Semiconductor Equipment & Materials | Semiconductor Equipment & Materials |
| Core business | Applied Materials is the world's largest semiconductor equipment company, supplying deposition, etch, implant, thermal, CMP, and process control tools to every major chipmaker globally. Its diversified portfolio across all equipment categories enables full participation in every semiconductor technology transition. AMAT's AGS (Applied Global Services) division provides recurring revenue from its massive installed base through spare parts, refurbishment, and advanced services. | KLA Corporation is the dominant process control and inspection equipment supplier for semiconductor manufacturing, holding approximately 50–55% global market share in process control. Its wafer inspection, patterning metrology, and mask inspection systems are used after every critical manufacturing step to detect defects before they propagate. KLA's inspection algorithm IP — developed over decades — creates switching costs that make it extremely difficult for fabs to qualify and transition to alternative suppliers. |
| Investor focus | Investors focus on AMAT's materials engineering leadership at advanced transistor architecture nodes, overall WFE spending trends, China export restriction impacts, and AGS services revenue growth as the installed base expands. | Investors focus on process control intensity per wafer (rising with technology complexity), EUV lithography-driven metrology demand, gross margins sustainably above 60%, and the structural tailwind from process control spending rising as a percentage of total WFE. |
AMAT strengths
- →Broadest equipment portfolio in semiconductors — the only equipment company present in every major fab process step
- →Materials-enabled architecture transitions (FinFET to GAA to CFET) favor AMAT's atomic-layer materials deposition IP
- →AGS services business provides large, growing, and relatively stable recurring revenue from an enormous worldwide installed base
KLAC strengths
- →Near-monopoly process control position (50–55% market share) with proprietary inspection algorithms built into customer production process flows
- →Gross margins consistently above 60% reflect unique pricing power from monopoly process control position
- →Process control spending intensity rises structurally with each new semiconductor node — KLA benefits from semiconductor technology complexity
Risks to watch — AMAT
- →China was historically AMAT's largest market — export restrictions have significantly reduced accessible revenue
- →Tokyo Electron (TEL) competes across nearly all AMAT product categories in logic and memory fabs
- →Broad portfolio means AMAT may have weaker individual product moats than specialists like KLA (process control) or Lam (etch)
Risks to watch — KLAC
- →China export restrictions have impacted KLA's Chinese fab customer access, reducing a meaningful revenue source
- →Emerging process control competitors (Onto Innovation, Hitachi) are investing to win market share, though with limited success to date
- →EUV lithography adoption slows some older brightfield inspection needs — KLA must continually evolve inspection tools
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