Quick verdict: AMAT vs INTC in 2026

Applied Materials (AMAT) emerges with a strong overall edge in this 2026 comparison, demonstrating superior growth and profitability metrics. AMAT stands out as the growth leader and margin leader, showcasing robust operational performance, while Intel (INTC) appears to offer a more appealing valuation on certain metrics, despite its current unprofitability. Analysts overwhelmingly favor AMAT, anticipating significantly higher upside potential compared to INTC. 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 2026-03-30.

AMAT vs INTC valuation comparison

When considering AMAT vs INTC valuation, the picture is complex due to their differing profitability profiles. Applied Materials (AMAT) currently trades at a P/E ratio of 34.11x, indicating that investors are paying a significant premium for its consistent earnings and growth potential. In contrast, Intel (INTC) exhibits a negative P/E ratio of -784.42x, which signals that the company is currently unprofitable. While a lower P/E is typically seen as a sign of better value, a negative P/E highlights a company facing significant earnings challenges, making a direct P/E comparison for “value” misleading without considering the underlying profitability.

On a Price-to-Book (P/B) basis, INTC appears considerably cheaper with a P/B of 1.83x compared to AMAT’s elevated P/B of 12.31x. This suggests that Intel’s stock trades closer to its book value, potentially offering more inherent asset-backed value. Furthermore, a Discounted Cash Flow (DCF) analysis reveals that both companies are currently valued above their intrinsic worth according to this model; AMAT shows a DCF upside of -210.1%, while INTC’s DCF upside is -80.3%. Although both figures indicate overvaluation by the model, INTC’s implied overvaluation is less extreme than AMAT’s. Therefore, for investors strictly seeking lower multiples and a less pronounced theoretical overvaluation, INTC might seem cheaper on selected metrics, but this comes with the caveat of negative earnings and free cash flow. This nuanced AMAT vs INTC valuation suggests that while Intel carries lower multiples, Applied Materials commands a premium for its strong, positive financial performance.

AMAT vs INTC growth comparison

In an AMAT vs INTC growth comparison, Applied Materials clearly demonstrates stronger momentum in its top-line expansion. AMAT reported a year-over-year revenue growth of +4.4%, reflecting steady demand for its semiconductor manufacturing equipment and services. This positive growth indicates the company’s ability to capitalize on the ongoing trends in the semiconductor industry and maintain its market position. This contrasts sharply with Intel (INTC), which experienced a revenue growth of -0.5% year-over-year, suggesting flat to declining sales and challenges in its core markets or competitive landscape.

Beyond just revenue, AMAT’s superior profitability margins also underscore its healthier growth trajectory. Applied Materials boasts an impressive EBITDA margin of 35.04% and a net margin of 27.78%, indicative of efficient operations and strong pricing power. Intel, despite its larger revenue base of $52.85B compared to AMAT’s $28.37B, lags significantly in profitability with an EBITDA margin of 27.16% and, notably, a negative net margin of -0.51%. While INTC is working on a turnaround strategy to reignite growth and profitability, as of 2026-03-30, AMAT undoubtedly exhibits stronger and more profitable growth momentum, positioning it more favorably for investors focused on expansion.

AMAT vs INTC profitability

When assessing AMAT vs INTC profitability, Applied Materials (AMAT) stands out as the clear leader, demonstrating significantly stronger financial health and efficiency. AMAT boasts an impressive net margin of 27.78%, meaning that for every dollar of revenue, a substantial portion translates into profit. This high net margin reflects effective cost management, strong demand for its products, and a favorable competitive landscape within the semiconductor equipment sector. Unfortunately, a direct comparison for Return on Equity (ROE) is not available for either company, as both are listed as N/A%.

In stark contrast, Intel (INTC) currently struggles with profitability, reporting a negative net margin of -0.51%. This indicates that the company is operating at a loss, a significant concern for investors. Furthermore, the Free Cash Flow (FCF) yield provides another crucial insight into which company generates more cash. AMAT shows a positive FCF yield of 2.31%, signifying its ability to generate healthy cash flows from its operations, which can be used for reinvestment, debt reduction, or shareholder returns. On the other hand, INTC has a negative FCF yield of -2.3%, implying that the company is consuming cash rather than generating it. This points to ongoing operational challenges and significant capital expenditures not yet yielding positive returns. Based on these metrics, AMAT undeniably generates more cash and is a far more profitable enterprise than INTC.

Analyst ratings: AMAT vs INTC

The analyst community shows a strong preference for Applied Materials (AMAT) over Intel Corporation (INTC) as of 2026-03-30. AMAT is covered by 53 analysts, with a dominant 79.3% issuing a “Buy” rating. This robust consensus for AMAT reflects confidence in its business model, market position, and future prospects within the semiconductor industry. The average analyst price target for AMAT is set at $420.83, suggesting a substantial upside potential of +24.8% from its current price of $337.17. This strong analyst endorsement and projected upside make AMAT a compelling option for investors following expert recommendations.

Intel (INTC), while covered by a larger group of 83 analysts, receives a less enthusiastic reception. Only 33.7% of analysts recommend a “Buy,” with the overall consensus settling at “Hold.” This more cautious outlook for INTC reflects ongoing concerns about its profitability, growth challenges, and competitive pressures. The average analyst price target for INTC is $47.85, indicating a more modest upside potential of +10.9% from its current price of $43.13. While there is still some anticipated upside for INTC, the analyst community’s significantly higher buy percentage and greater price target upside for AMAT clearly indicate which stock analysts prefer as a prospective investment.

Should I buy AMAT or INTC stock in 2026?

For investors prioritizing growth and robust financial performance in 2026, Applied Materials (AMAT) presents a more compelling case. With its positive revenue growth of 4.4% and an impressive net margin of 27.78%, AMAT demonstrates strong operational health and market leadership in the critical semiconductor equipment sector. This consistent profitability, coupled with a positive free cash flow yield of 2.31% and strong analyst support, suggests AMAT is well-positioned for continued expansion and shareholder value creation. Growth investors typically seek companies with proven earnings power and a clear trajectory, attributes that AMAT currently exhibits in abundance.

For value investors, the decision regarding AMAT vs INTC fundamentals and valuation is more nuanced. While Intel (INTC) has a significantly lower Price-to-Book ratio of 1.83x compared to AMAT’s 12.31x, signaling a potentially cheaper valuation relative to its assets, its negative P/E ratio (-784.42x) and negative net margin (-0.51%) highlight substantial challenges. Value investing often involves identifying undervalued companies, but INTC’s current unprofitability and negative free cash flow yield of -2.3% introduce considerable risk, overshadowing its lower P/B. The less severe implied overvaluation from the DCF model for INTC (-80.3% vs AMAT’s -210.1%) might tempt some, but it’s crucial to weigh this against the company’s operational struggles.

Regarding income, neither AMAT nor INTC stand out as primary choices for dividend-focused investors. AMAT offers a minimal dividend yield of 0.01%, while INTC currently offers 0%. Therefore, for those asking “should i buy amat or intc stock 2026” specifically for dividend income, neither company meets the criteria for a significant income-generating investment. Overall, AMAT appears to be the stronger contender for growth-oriented portfolios, while INTC presents a speculative value play relying on a successful turnaround. This is not investment advice; investors should conduct their own thorough research.

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