Quick verdict: AMAT vs AMD in 2026

In this AMAT vs AMD stock comparison for 2026, Applied Materials (AMAT) emerges with a slight overall edge based on a strong performance across profitability and analyst sentiment, securing 5 wins out of 9 comparable metrics. Advanced Micro Devices (AMD) stands out as the clear growth leader with significantly higher revenue growth, while AMAT showcases superior value and impressive margins. Analysts also show a stronger preference for AMAT, offering marginally more upside in their consensus price targets. Not investment advice.

AMAT vs AMD: key metrics side by side

Full side-by-side comparison of AMAT and AMD across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-16.

AMAT vs AMD valuation comparison

When considering the AMAT vs AMD valuation, Applied Materials appears to be the more reasonably valued stock based on its P/E ratio. AMAT trades at a P/E of 39.54x, which, while substantial, is considerably lower than AMD’s P/E of 103.62x. This suggests that the market assigns a significantly higher growth premium to AMD’s earnings compared to AMAT’s. On the other hand, examining the price-to-book (P/B) ratio reveals a different picture, with AMAT at 14.27x and AMD at a lower 7.13x. This could imply that AMD’s assets are valued more conservatively by the market or that AMAT’s intangible assets and brand strength are heavily factored into its book value.

The discounted cash flow (DCF) analysis presents a concerning outlook for both companies, indicating that both stocks may be overvalued based on their current cash flow projections. AMAT shows a DCF upside of -196.5%, suggesting a substantial disconnect between its current market price and its intrinsic value as calculated by this model. AMD’s DCF upside is also deeply negative at -76.0%, though it represents a less severe potential overvaluation compared to AMAT. This makes AMD appear “cheaper” in terms of DCF downside. Investors focused on traditional earnings multiples might find AMAT more attractive, whereas those prioritizing asset-backed valuation might lean towards AMD, though both carry significant DCF-implied overvaluation risks.

AMAT vs AMD growth comparison

In an AMAT vs AMD growth comparison, Advanced Micro Devices (AMD) clearly demonstrates superior revenue momentum. AMD reported a robust year-over-year revenue growth of +34.3%, significantly outpacing Applied Materials (AMAT), which saw its revenue grow by a more modest +4.4%. This substantial difference highlights AMD’s strong position in rapidly expanding segments, likely driven by demand for its CPUs, GPUs, and data center solutions amidst the ongoing technological advancements. AMD’s ability to capture market share and innovate in high-growth areas positions it as a leader for investors prioritizing top-line expansion.

While AMD leads in growth, it’s worth noting the companies’ revenue scales. AMD reported higher trailing twelve-month revenue at $34.64 billion, compared to AMAT’s $28.37 billion. Despite AMAT’s lower growth rate, its role as a critical supplier of manufacturing equipment to the semiconductor industry means its growth is tied to the broader capital expenditure cycles of chipmakers. However, for investors seeking companies with stronger immediate momentum and a higher percentage increase in their revenue base, AMD presents a more compelling narrative based on the provided growth figures.

AMAT vs AMD profitability

Examining the AMAT vs AMD profitability, Applied Materials (AMAT) stands out with considerably stronger margins. AMAT boasts an impressive net margin of 27.78%, which is more than double that of AMD’s 12.51%. This indicates that AMAT is significantly more efficient at converting its revenue into actual profit for shareholders. Furthermore, AMAT’s EBITDA margin of 35.04% also comfortably surpasses AMD’s 21.03%, reinforcing AMAT’s operational efficiency and ability to generate profits before non-operating expenses. These higher margins suggest a more mature business model with potentially stronger pricing power or better cost controls.

While Return on Equity (ROE) data is not available for either company, the Free Cash Flow (FCF) yield provides further insight into their cash generation capabilities. AMAT has a FCF yield of 2.0%, which is slightly higher than AMD’s 1.5%. A higher FCF yield indicates that a company is generating more cash relative to its market capitalization, which is generally a positive sign for financial health and flexibility. Overall, in terms of sheer profitability and cash generation from operations, AMAT clearly generates more cash and demonstrates a more robust financial performance than AMD, making it a more appealing choice for investors focused on strong bottom-line fundamentals.

Analyst ratings: AMAT vs AMD

When reviewing analyst ratings for AMAT vs AMD, both companies currently hold a “Buy” consensus from the analyst community, indicating a general positive sentiment across the board. However, there are nuances in their preferences. Applied Materials (AMAT) benefits from a higher percentage of ‘Buy’ ratings among analysts, with 79.3% of the 53 analysts covering the stock recommending a Buy. Their consensus target price for AMAT is $426.39, representing an attractive upside potential of +9.1% from its current price of $390.91. This strong endorsement suggests confidence in AMAT’s role as a foundational player in the semiconductor equipment industry.

Advanced Micro Devices (AMD) also enjoys a “Buy” consensus, though with a slightly lower proportion of enthusiastic recommendations. Out of 69 analysts, 68.1% have a ‘Buy’ rating on AMD. The consensus target price for AMD is $299.9, implying an +8.8% upside from its current price of $275.58. While both stocks offer similar potential upside according to analysts, the higher percentage of buy ratings and marginally greater price target upside for AMAT suggest a slightly stronger collective preference among the analysts covering these prominent technology stocks.

Should I buy AMAT or AMD stock in 2026?

Deciding whether to buy AMAT or AMD stock in 2026 depends heavily on your investment priorities, considering their distinct profiles. If you are a growth-oriented investor looking for a company with strong top-line expansion, AMD presents a compelling case. Its remarkable year-over-year revenue growth of +34.3% significantly outshines AMAT’s +4.4%. AMD’s continuous innovation in CPUs, GPUs, and its expanding presence in high-growth markets like data centers and AI accelerators position it as a dynamic player that could deliver substantial capital appreciation, albeit at a higher valuation multiple.

For value investors, particularly those focused on earnings multiples and strong profitability, AMAT appears to be the more attractive choice. With a P/E ratio of 39.54x, AMAT trades at a much more reasonable valuation compared to AMD’s 103.62x. Moreover, AMAT boasts superior net margins (27.78% vs 12.51%) and EBITDA margins (35.04% vs 21.03%), indicating excellent operational efficiency and robust underlying profitability. While the DCF analysis for both suggests significant overvaluation, AMAT’s metrics on profitability and traditional P/E make it a more appealing option for those seeking quality earnings at a comparatively lower price.

Regarding income, neither AMAT nor AMD currently pays a dividend, both showing a 0.0% dividend yield. Therefore, if generating regular income through dividends is a key part of your investment strategy, neither of these semiconductor giants would be a suitable choice in 2026. Your decision on should I buy AMAT or AMD stock 2026 should align with whether you prioritize aggressive growth and market disruption (AMD) or robust profitability and a more tempered valuation (AMAT). This is not investment advice.

More AMAT and AMD comparisons

AMAT full stock analysis · AMD full stock analysis · All stock comparisons

FAQ: AMAT vs AMD