Quick verdict: AMAT vs INTC in 2026

Applied Materials (AMAT) currently holds a significant edge over Intel (INTC) in this 2026 stock comparison, demonstrating stronger growth, superior profitability, and overwhelmingly positive analyst sentiment. AMAT is the clear growth leader, while INTC offers a lower valuation on some metrics, making it a potential value play if a turnaround materializes. AMAT also boasts significantly better margins and is the preferred choice among analysts for its higher upside potential. Not investment advice.

AMAT vs INTC: key metrics side by side

Full side-by-side comparison of AMAT and INTC across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

AMAT vs INTC valuation comparison

When considering AMAT vs INTC valuation, investors are presented with a stark contrast. Applied Materials (AMAT) trades at a positive P/E ratio of 38.7x, reflecting its solid profitability and market confidence in its earnings. In contrast, Intel (INTC) shows a negative P/E ratio of -151.74x. This negative figure is a direct result of INTC’s current unprofitability, as a P/E ratio is calculated by dividing stock price by earnings per share, and a negative earnings per share leads to a negative P/E. While a negative P/E can sometimes be interpreted as the market pricing in a significant turnaround for a loss-making company, it fundamentally signals financial distress from a profitability standpoint.

Delving deeper into their valuation metrics, we find that INTC appears cheaper on a book value basis, with a P/B ratio of 4.32x compared to AMAT’s significantly higher 13.97x. This suggests that INTC’s assets are valued much lower by the market relative to its share price. However, the Discounted Cash Flow (DCF) analysis paints a concerning picture for both companies, indicating substantial overvaluation against their intrinsic value. AMAT’s DCF upside is a staggering -196.4%, implying its current price is well above its fair value according to this model. INTC’s DCF upside, while still negative at -92.1%, is less severe, suggesting that while also overvalued, its current market price has less extreme divergence from its calculated intrinsic value. For investors focused on the AMAT vs INTC valuation, INTC might present a “cheaper” entry point based on P/B and a slightly less negative DCF, but this must be weighed against its fundamental unprofitability.

AMAT vs INTC growth comparison

In terms of growth, Applied Materials (AMAT) demonstrates clear momentum over Intel (INTC). AMAT reported a revenue growth of +4.4% year-over-year, indicative of a healthy and expanding business within the semiconductor equipment sector. This positive trajectory aligns with the broader demand for advanced chip manufacturing. On the other hand, INTC registered a revenue growth of -0.5% year-over-year, signifying a contraction in its top-line performance. This slight decline suggests ongoing challenges for the chip giant in a highly competitive and evolving market, where it struggles to maintain its historical dominance.

This divergence in revenue growth is further underscored when we examine their operational efficiencies. AMAT showcases an impressive EBITDA margin of 35.04% and a robust net margin of 27.78%. These figures highlight AMAT’s ability to not only grow its revenue but also convert a significant portion into profit, pointing to strong operational management and a favorable market position. In stark contrast, INTC’s EBITDA margin stands at a lower 21.21%, and more critically, its net margin is a negative -5.9%. This negative net margin means that INTC is currently operating at a loss, which significantly impacts its ability to fund future growth initiatives organically. When comparing AMAT vs INTC fundamentals, AMAT clearly has stronger momentum driven by consistent revenue increases and superior profitability.

AMAT vs INTC profitability

When analyzing AMAT vs INTC profitability, the figures present a stark difference in their current financial health. Applied Materials (AMAT) boasts an impressive net margin of 27.78%, indicating that it effectively converts a substantial portion of its revenue into net income. This high margin is a testament to its efficient operations and strong pricing power within its specialized segment of the semiconductor industry. Such profitability allows AMAT to reinvest in research and development, return capital to shareholders, and withstand economic fluctuations more effectively.

In sharp contrast, Intel Corporation (INTC) reports a negative net margin of -5.9%. This critical metric signifies that INTC is currently operating at a loss, meaning its costs exceed its revenues. While both companies have a “N/A%” reported for Return on Equity (ROE), the Free Cash Flow (FCF) yield further emphasizes AMAT’s superior cash generation, standing at a positive 2.04%. Meanwhile, INTC’s FCF yield is a negative -0.66%, indicating that it is burning cash rather than generating it from its operations. Clearly, AMAT generates significantly more cash and maintains a much healthier profit profile, making it the more fundamentally robust choice in terms of profitability.

Analyst ratings: AMAT vs INTC

The analyst community’s sentiment strongly favors Applied Materials (AMAT) over Intel Corporation (INTC). A substantial 79.3% of the 53 analysts covering AMAT recommend a “Buy” rating, reflecting high confidence in the company’s prospects. Their consensus price target for AMAT is $426.39, which represents a healthy upside potential of +11.4% from its current price of $382.59. This robust endorsement suggests that experts anticipate continued growth and outperformance for AMAT in the foreseeable future.

For Intel (INTC), the analyst picture is considerably less optimistic. Out of 83 analysts, only 34.9% currently recommend a “Buy” rating, with the majority falling into “Hold” or “Sell” categories. The consensus price target for INTC is $74.82, which indicates a significant downside of -21.0% from its current price of $94.75. This negative target suggests that analysts generally believe INTC is overvalued at its current level and faces considerable headwinds or a longer path to recovery. Clearly, analysts prefer AMAT, seeing more immediate and positive upside in its stock performance.

Should I buy AMAT or INTC stock in 2026?

For growth-oriented investors looking at the amat vs intc stock comparison 2026, Applied Materials (AMAT) presents a more compelling case. With a revenue growth rate of +4.4% year-over-year and impressive net margins of 27.78% and EBITDA margins of 35.04%, AMAT demonstrates strong operational health and a clear capacity to expand profitably. Its positive free cash flow yield of 2.04% further underscores its ability to generate cash, making it an attractive option for those prioritizing consistent top-line and bottom-line expansion within the semiconductor industry.

Considering amat vs intc fundamentals and valuation, Intel (INTC) might appeal to contrarian or deep value investors, despite its current challenges. While its P/E ratio is negative at -151.74x due to losses (net margin of -5.9%), its P/B ratio of 4.32x is significantly lower than AMAT’s 13.97x, suggesting it could be undervalued on an asset basis. The DCF analysis also indicates a less severe overvaluation for INTC (-92.1% vs AMAT’s -196.4%). However, investors must weigh this potential “value” against INTC’s declining revenue (-0.5% YoY) and negative free cash flow yield, betting on a successful turnaround in its core chip manufacturing and design businesses.

For income-focused investors, neither AMAT nor INTC stand out in 2026. Both companies currently report a 0.0% dividend yield, meaning they do not distribute profits to shareholders through dividends. Therefore, if your investment strategy is centered on generating regular income, you should look beyond this amat vs intc stock comparison 2026. Both stocks are primarily suited for investors seeking capital appreciation, with AMAT offering a more stable and growing profile, while INTC represents a more speculative turnaround play. This is not investment advice; always conduct your own thorough research.

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