Data as of:
LIVE
AMAT
Applied Materials, Inc. · Technology - Semiconductor Equipment
$444.57
-10.40% this month
VERSUS
COMPARE
LRCX
Lam Research Corporation · Technology - Semiconductor Equipment
$288.11
-6.21% this month
Comparison scoreboard
AMAT LEADS 3/5AI Scorei
AMAT 80.3
LRCX ✓81.8
1Y Returni
AMAT ✓+134.28%
LRCX +128.08%
Fwd P/Ei
AMAT ✓24.74
LRCX 26.12
Target Up.i
AMAT ✓+40.39%
LRCX +22.95%
Op. Margini
AMAT 33.74%
LRCX ✓37.39%
Metrics last refreshed: 9/20/2026
Quick take
AMAT vs LRCX Stock Comparison: AI Score, Valuation, Performance and Upside
AMAT (Applied Materials) and LRCX (Lam Research) are the two largest U.S. semiconductor equipment companies — Applied Materials is more diversified across process steps (CVD, PVD, ALD, etch, implant, inspection), while Lam Research is more concentrated in etch and deposition with particular leadership in 3D NAND memory etch. Both face China export restriction headwinds and semiconductor capex cycle volatility.
AMAT vs LRCX is semiconductor equipment breadth (Applied Materials' multi-process-step coverage from materials engineering through inspection) versus etch and deposition depth (Lam Research's leadership in high-aspect-ratio memory etch and thin film deposition with higher memory customer concentration) — both are essential to advanced chip manufacturing but with different risk profiles.
Live analysis · updated 9/20/2026
AMAT holds the edge across 3 of 5 key metrics in this comparison. AMAT leads on both 1-year return (+134.28%) and forward P/E quality (24.74x vs 26.12x for LRCX), a relatively favorable combination of momentum and valuation. LRCX leads on both revenue growth (30.00%) and operating margin (37.39%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for AMAT (+40.39%) than for LRCX (+22.95%).
Want a full valuation workup? 46-section report — AI Score, Monte Carlo forecast, bull/bear case, DCF, and more.
Normalized 1Y performance
AMAT
LRCX
Recent returns
AMAT
LRCX
Analyst price targets & sentiment
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
AMAT · 32 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.7/5.0)
33 Buy / 6 Hold / 0 Sell
Price target range
analyst low$152.00
analyst mean$640.89
current price$444.57
+40.4% upside to analyst mean
LRCX · 30 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.7/5.0)
29 Buy / 6 Hold / 0 Sell
Price target range
analyst low$70.00
analyst mean$371.19
current price$288.11
+23.0% upside to analyst mean
Who should consider this stock?
AMAT may suit investors who:
- Want the most diversified semiconductor equipment company exposure — Applied Materials participates in the most process steps of any equipment company, reducing dependence on any single technology or customer segment
- Value Applied Materials' materials engineering leadership as a growing advantage as advanced chips require new exotic materials at each node generation
- Prefer Applied Materials' more balanced logic/memory customer mix versus Lam Research's heavier memory concentration for lower cyclical sensitivity
LRCX may suit investors who:
- Want concentrated exposure to etch market leadership and 3D NAND memory equipment — Lam Research's dominant high-aspect-ratio etch position grows in content per wafer with each NAND layer generation increase
- Value Lam's deep technical integration with the world's largest memory manufacturers as a high-switching-cost competitive moat within the equipment supply chain
- Accept higher memory customer concentration for exposure to Lam's 3D NAND structural tailwind as memory manufacturers continue to scale layer counts
Performance & AI score
| Metric | AMAT | LRCX |
|---|---|---|
| AI scorei | 80.3 | 81.8 |
| AI ranki | #14 | #10 |
| Latest closei | $444.57 | $288.11 |
| 1M returni | -10.40% | -6.21% |
| 6M returni | +24.46% | +23.13% |
| 1Y returni | +134.28% | +128.08% |
$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 | LRCX |
|---|---|---|
| 1Y ago | $23.43K (+134.3%) started 2025-09-18 | $22.81K (+128.1%) started 2025-09-18 |
| 5Y ago | $34.86K (+248.6%) started 2021-09-20 | $49.88K (+398.8%) started 2021-09-20 |
| 10Y ago | $178.36K (+1683.6%) started 2016-09-19 | $348.19K (+3381.9%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | AMAT | LRCX |
|---|---|---|
| Market capi | $362.27B | $377.77B |
| Trailing P/Ei | 39.39 | 52.32 |
| Forward P/Ei | 24.74 | 26.12 |
| Price/Salesi | 4.76 | 6.45 |
| EV/Revenuei | 11.69 | 16.20 |
| Analyst targeti | $640.89 | $371.19 |
| Target upsidei | +40.39% | +22.95% |
Growth, profitability & risk
| Metric | AMAT | LRCX |
|---|---|---|
| Revenue growthi | 24.80% | 30.00% |
| Earnings growthi | 42.80% | 34.80% |
| EPS growthi | +42.80% | +34.80% |
| FCF margini | +9.97% | +13.30% |
| Operating margini | 33.74% | 37.39% |
| Profit margini | 30.05% | 31.27% |
| ROIC proxyi | 41.07% | 65.07% |
| Return on equityi | 41.07% | 65.07% |
| Dividend yieldi | 0.46% | 0.44% |
| Payout ratioi | 16.48% | 18.06% |
| Dividend growth streaki | No increase yet | No increase yet |
| Betai | 1.60 | 1.86 |
| Debt/equityi | 28.67 | 33.05 |
| Current ratioi | 2.42 | 2.63 |
| Quick ratioi | 1.63 | 1.84 |
Correlation
Over the past year, AMAT and LRCX have moved strongly in the same direction (correlation of 0.90), based on daily returns.
1Y
0.90
-1.0+1.0
5Y
0.91
-1.0+1.0
10Y
0.91
-1.0+1.0
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 drawdowni42.55%
LRCX max drawdowni41.76%
AMAT max wkly dropi21.21%
LRCX max wkly dropi23.12%
5Y risk snapshot
AMAT max drawdowni55.14%
LRCX max drawdowni56.85%
AMAT max wkly dropi21.21%
LRCX max wkly dropi23.12%
10Y risk snapshot
AMAT max drawdowni55.14%
LRCX max drawdowni56.85%
AMAT max wkly dropi25.36%
LRCX max wkly dropi29.82%
Performance metrics by period
| Period | Metric | AMAT | LRCX |
|---|---|---|---|
| 1Y | Growthi | +134.28% | +128.08% |
| CAGRi | +134.42% | +128.21% | |
| Volatilityi | 59.84% | 64.75% | |
| Sharpe ratioi | 1.65 | 1.53 | |
| Sortino ratioi | 2.57 | 2.36 | |
| Max drawdowni | 42.55% | 41.76% | |
| Current drawdowni | 38.51% | 33.51% | |
| Avg drawdowni | 9.31% | 9.75% | |
| Ulcer Indexi | 15.10% | 14.64% | |
| Max daily dropi | 9.97% | 10.19% | |
| Max wkly dropi | 21.21% | 23.12% | |
| 5Y | Growthi | +238.06% | +393.64% |
| CAGRi | +27.62% | +37.66% | |
| Volatilityi | 47.22% | 49.63% | |
| Sharpe ratioi | 0.66 | 0.80 | |
| Sortino ratioi | 0.96 | 1.19 | |
| Max drawdowni | 55.14% | 56.85% | |
| Current drawdowni | 38.51% | 33.51% | |
| Avg drawdowni | 20.72% | 19.20% | |
| Ulcer Indexi | 25.31% | 24.07% | |
| Max daily dropi | 14.07% | 11.60% | |
| Max wkly dropi | 21.21% | 23.12% | |
| 10Y | Growthi | +1514.20% | +3198.33% |
| CAGRi | +32.08% | +41.87% | |
| Volatilityi | 44.56% | 46.57% | |
| Sharpe ratioi | 0.75 | 0.89 | |
| Sortino ratioi | 1.09 | 1.32 | |
| Max drawdowni | 55.14% | 56.85% | |
| Current drawdowni | 38.51% | 33.51% | |
| Avg drawdowni | 16.98% | 15.23% | |
| Ulcer Indexi | 22.26% | 20.31% | |
| Max daily dropi | 20.36% | 18.43% | |
| Max wkly dropi | 25.36% | 29.82% |
Business comparison
| Category | AMAT | LRCX |
|---|---|---|
| Company | Applied Materials, Inc. | Lam Research Corporation |
| Sector | Technology | Technology |
| Industry | Semiconductor Equipment & Materials | Semiconductor Equipment & Materials |
| Core business | Applied Materials is the world's largest semiconductor equipment company by revenue — providing chemical vapor deposition (CVD), physical vapor deposition (PVD), atomic layer deposition (ALD), etch, ion implant, inspection, and process control equipment used across the full wafer fabrication flow. Applied Materials serves logic, memory (DRAM, NAND), and display manufacturing. | Lam Research is a semiconductor equipment leader specializing in etch and deposition equipment — particularly plasma etch (selectively removing material in precise patterns), CVD/ALD thin film deposition, and cleaning equipment. Lam is the leader in etch for logic and has dominant positions in high-aspect-ratio memory etch for NAND flash, which requires etching very deep, narrow holes. |
| Investor focus | Investors track Applied Materials' equipment orders (bookings), revenue from logic versus memory customers, wafer fabrication equipment (WFE) market share, service revenue from its large installed base, and its materials engineering focus as chips require new materials at each advanced node. | Investors track Lam Research's equipment orders, memory versus logic customer mix (Lam has historically high memory exposure), etch and deposition market share, China exposure under export restrictions, and service/spares revenue from its installed base. |
AMAT strengths
- Largest and most diversified semiconductor equipment portfolio — Applied Materials participates in more process steps (CVD, PVD, ALD, etch, ion implant, CMP, inspection) than any competitor, reducing cyclical risk from any single technology
- Materials engineering leadership — as chip features shrink, new materials (high-k dielectrics, metal gates, cobalt, ruthenium) become critical, and Applied Materials' expertise in depositing and engineering these materials is a strategic advantage
- Large installed base generates significant service, parts, and upgrade revenue that smooths the capital equipment order cycle
LRCX strengths
- Etch market leadership — Lam Research is the #1 or #2 player in most etch categories and dominates high-aspect-ratio etch for 3D NAND, a technology requiring billions of dollars of specialized equipment per new NAND fab
- 3D NAND structural advantage — as NAND layers increase from 96 to 200+ layers, each generation requires more Lam etch steps per wafer, growing Lam's content per wafer independently of industry unit growth
- Strong memory customer relationships with Samsung, SK Hynix, Micron, and Kioxia — Lam's deep technical integration with memory manufacturers creates high switching costs for its equipment
Risks to watch — AMAT
- Export restrictions on China — Applied Materials has substantial China revenue; U.S. export control regulations on advanced semiconductor equipment to China represent a significant revenue headwind
- Memory market cyclicality — NAND and DRAM capital expenditure is highly cyclical; Applied Materials' memory customer exposure creates revenue volatility when memory chipmakers cut spending
- Competition from Tokyo Electron (TEL), Lam Research, and ASM International in specific process steps where Applied Materials' market position is less dominant
Risks to watch — LRCX
- Higher memory concentration than Applied Materials — Lam's revenue is more tied to memory capital expenditure cycles, creating greater cyclical swings during NAND/DRAM inventory corrections
- Export restriction risk to China is significant — Lam has material China revenue that is constrained by U.S. export controls on advanced etch equipment
- Customer concentration in a small number of large memory manufacturers (Samsung, SK Hynix, Micron, Kioxia) — spending decisions by these few companies have outsized impact on Lam's order rates
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