Quick verdict: AMAT vs LRCX in 2026

As of April 1, 2026, Lam Research (LRCX) appears to hold a slight edge over Applied Materials (AMAT) in this comprehensive stock comparison, leading on 5 out of 9 comparable metrics. LRCX stands out as the growth leader and demonstrates superior profitability with higher net margins and FCF yield, while also offering greater potential analyst upside. Conversely, AMAT presents a more compelling profile for value investors with lower P/E and P/B ratios, slightly better analyst conviction percentage, and the notable advantage of offering a small dividend yield. This is not investment advice.

AMAT vs LRCX: key metrics side by side

Full side-by-side comparison of AMAT and LRCX across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-01.

AMAT vs LRCX valuation comparison

When considering the AMAT vs LRCX valuation, Applied Materials (AMAT) currently appears more attractively valued based on traditional metrics. AMAT trades at a trailing twelve-month Price-to-Earnings (P/E) ratio of 34.58x, significantly lower than Lam Research’s (LRCX) P/E of 43.32x. This suggests that investors are paying less for each dollar of AMAT’s earnings compared to LRCX. Furthermore, AMAT’s Price-to-Book (P/B) ratio stands at 12.48x, a substantial discount compared to LRCX’s P/B of 26.53x, indicating a more conservative valuation relative to its assets.

However, a deeper dive into valuation using the Discounted Cash Flow (DCF) model presents a more complex picture. While both companies show negative DCF upsides, suggesting potential overvaluation according to this model, LRCX’s negative upside of -76.3% is considerably less severe than AMAT’s -211.0%. This implies that while the market might be pricing both stocks above their intrinsic value based on current cash flow projections, LRCX’s current price is closer to its estimated fair value than AMAT’s. For investors prioritizing current earnings and book value, AMAT offers a more favorable entry point, yet LRCX shows a relatively better position when assessing intrinsic value via DCF analysis.

AMAT vs LRCX growth comparison

In terms of growth, Lam Research (LRCX) demonstrates significantly stronger momentum compared to Applied Materials (AMAT). LRCX reported a robust year-over-year revenue growth of 23.7%, showcasing its ability to capture market share and expand its top line effectively in the semiconductor equipment sector. This substantial growth rate suggests a dynamic operational environment and potentially increasing demand for its specialized products and services.

In contrast, AMAT’s revenue growth stood at 4.4% year-over-year. While positive, this rate indicates a slower pace of expansion compared to its peer. This disparity in revenue growth could be attributed to various factors, including different product cycles, market segment focus, or competitive pressures. For investors focused on high-growth opportunities, LRCX clearly exhibits a stronger trajectory, potentially leading to more favorable forward estimates and future profitability, even though specific forward estimates are not provided in the data. Overall, LRCX holds the advantage in the AMAT vs LRCX growth comparison, signaling stronger recent performance and greater upside potential from a growth perspective.

AMAT vs LRCX profitability

Examining the AMAT vs LRCX profitability, Lam Research (LRCX) emerges as the more profitable entity, particularly when looking at net margins. LRCX boasts a net margin of 30.22%, which is higher than Applied Materials’ (AMAT) net margin of 27.78%. This indicates that LRCX is more efficient at converting its revenue into actual profit for shareholders, after accounting for all expenses, including taxes. This edge in net margin suggests superior operational management or a more favorable cost structure for LRCX.

Further supporting LRCX’s profitability lead, its EBITDA margin is 36.48% compared to AMAT’s 35.04%. While the difference is slight, it reinforces LRCX’s efficiency at the operational level before accounting for depreciation and amortization. Regrettably, the Return on Equity (ROE) for both companies is N/A%, preventing a direct comparison of how efficiently they generate profits from shareholder investments. However, in terms of free cash flow generation, LRCX also holds an advantage with a FCF yield of 2.5%, marginally higher than AMAT’s 2.28%. This means LRCX generates more cash flow relative to its market capitalization, offering better flexibility for investments, debt repayment, or shareholder returns. Collectively, LRCX generates more cash and displays a slightly better profitability profile.

Analyst ratings: AMAT vs LRCX

The analyst community holds a generally positive outlook for both Applied Materials (AMAT) and Lam Research (LRCX), with both stocks receiving a “Buy” consensus rating. AMAT, however, has a slightly higher percentage of ‘Buy’ recommendations, with 79.3% of 53 analysts endorsing the stock. Their consensus price target for AMAT is $420.83, suggesting a considerable upside of +23.1% from its current price of $341.79. This indicates a strong belief among analysts in AMAT’s future performance and potential for capital appreciation.

LRCX also garners strong analyst support, with 76.0% of 50 analysts rating it a ‘Buy’. Despite a slightly lower ‘Buy’ percentage than AMAT, LRCX offers a higher projected upside. The consensus price target for LRCX is $275.76, representing an impressive potential upside of +29.1% from its current price of $213.66. While AMAT is technically preferred by a larger proportion of analysts, LRCX is seen by the collective analyst community as having greater potential for price appreciation in the near term, making it an intriguing option for growth-oriented investors.

Should I buy AMAT or LRCX stock in 2026?

Deciding whether you should buy AMAT or LRCX stock in 2026 depends heavily on your investment priorities and risk tolerance. For growth-oriented investors, Lam Research (LRCX) appears to be the more compelling choice. LRCX boasts a significantly higher year-over-year revenue growth rate of 23.7%, far outstripping AMAT’s 4.4%. This stronger momentum suggests that LRCX is currently better positioned for market expansion and capturing new opportunities within the dynamic semiconductor industry. Furthermore, LRCX shows a higher analyst price target upside of +29.1%, compared to AMAT’s +23.1%, and a less severe DCF overvaluation, indicating potentially stronger future performance in the eyes of experts and models.

Value investors, on the other hand, might find Applied Materials (AMAT) more appealing. AMAT trades at a lower Price-to-Earnings (P/E) ratio of 34.58x compared to LRCX’s 43.32x, and a much lower Price-to-Book (P/B) ratio of 12.48x versus LRCX’s 26.53x. These metrics suggest AMAT is currently trading at a more attractive valuation relative to its earnings and assets. While both stocks show overvaluation according to the DCF model, AMAT’s current market price presents a comparatively better deal for those prioritizing traditional valuation metrics, making it a stronger contender in the `amat vs lrcx fundamentals and valuation` debate for value seekers.

For income-focused investors, the choice is clear, albeit minimal. AMAT offers a nominal dividend yield of 0.01%, providing a slight return to shareholders, whereas LRCX currently has a dividend yield of 0.0%. While neither company is a significant dividend payer, AMAT provides at least some income component. Ultimately, the decision between AMAT and LRCX stock in 2026 hinges on whether you prioritize growth and potential upside (LRCX) or a more conservative valuation with a slight dividend (AMAT). This is not investment advice.

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FAQ: AMAT vs LRCX