Quick verdict: AMAT vs AMD in 2026

As of April 30, 2026, Applied Materials (AMAT) appears to hold an overall edge compared to Advanced Micro Devices (AMD), particularly in profitability, valuation multiples, and analyst sentiment, while AMD stands out as the clear growth leader. AMAT presents a stronger profile for value investors with its superior margins and a positive analyst price target. For investors comparing AMAT vs AMD stock in 2026, AMAT offers a more compelling risk-reward based on current fundamentals and analyst outlook. 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 2026-04-30.

AMAT vs AMD valuation comparison

For investors analyzing AMAT vs AMD valuation, Applied Materials (AMAT) presents a notably lower price-to-earnings (P/E) ratio of 38.7x, which is substantially more attractive compared to Advanced Micro Devices (AMD)’s P/E of 126.76x. This indicates that AMAT’s current earnings are valued more conservatively by the market, potentially offering a better entry point for value-conscious investors. The significant difference in P/E ratios highlights AMD’s premium valuation, likely reflecting higher growth expectations built into its stock price.
However, a deeper dive into the valuation metrics reveals nuances. While AMAT is cheaper on a P/E basis, AMD boasts a lower price-to-book (P/B) ratio of 8.72x, compared to AMAT’s 13.97x, suggesting that AMD’s assets are valued more modestly relative to its market capitalization. Furthermore, the discounted cash flow (DCF) models for both companies indicate overvaluation, with AMAT’s DCF upside at -196.4% and AMD’s at -80.8%. Although both are negative, AMD’s less severe implied overvaluation by DCF could be seen as comparatively more favorable. Ultimately, for investors prioritizing earnings-based valuation, AMAT’s P/E multiple offers a clearer advantage, while AMD shows a stronger position on a price-to-book basis and comparatively less extreme implied overvaluation from DCF models.

AMAT vs AMD growth comparison

Advanced Micro Devices (AMD) clearly exhibits stronger top-line momentum, reporting a remarkable year-over-year revenue growth of 34.3%. This significantly outpaces Applied Materials (AMAT)’s more modest revenue growth of 4.4%. This substantial difference firmly establishes AMD as the growth leader when performing an AMAT vs AMD stock comparison 2026, reflecting its aggressive expansion and success in key markets like CPUs, GPUs, and data center solutions, often benefiting from increasing demand in AI and high-performance computing.
While AMAT’s growth is more tempered, reflecting its position in the semiconductor equipment industry, which can experience cyclical demand shifts, its consistent revenue still points to a resilient and essential business. For investors prioritizing aggressive expansion and capturing market share, AMD’s higher revenue growth percentage and strong momentum make it a compelling choice. Conversely, AMAT’s steady performance underscores its foundational role in enabling the entire semiconductor manufacturing ecosystem, suggesting a more stable, albeit slower, growth profile. The stark contrast in these growth figures is a primary differentiator for investors examining AMAT vs AMD earnings growth comparison.

AMAT vs AMD profitability

Applied Materials (AMAT) stands out as significantly more profitable than Advanced Micro Devices (AMD) across several key metrics. AMAT boasts an impressive net margin of 27.78%, which is more than double AMD’s 12.51%. This wide disparity indicates AMAT’s superior efficiency in converting its revenue into bottom-line profit. This strong profitability is further reinforced by AMAT’s EBITDA margin of 35.04%, comfortably exceeding AMD’s 21.03%, suggesting better operational leverage and cost control within AMAT’s business model.
Furthermore, AMAT also demonstrates greater efficiency in generating cash flow, with a free cash flow (FCF) yield of 2.04% compared to AMD’s 1.23%. This higher FCF yield suggests that AMAT is better at translating its earnings into available cash for reinvestment, debt reduction, or shareholder returns, a critical aspect for assessing AMAT vs AMD fundamentals and valuation. Both companies report “N/A%” for Return on Equity (ROE), preventing a direct comparison on that specific metric. However, based on the robust net margins, EBITDA margins, and FCF yield, AMAT clearly emerges as the more profitable company, a crucial factor for investors examining AMAT vs AMD profitability comparison.

Analyst ratings: AMAT vs AMD

When examining analyst sentiment for the AMAT vs AMD stock comparison 2026, Applied Materials (AMAT) appears to be the clearer favorite among the financial community. Of the 53 analysts covering AMAT, a high percentage of 79.3% recommend a “Buy,” leading to a strong consensus “Buy” rating. More importantly, their average price target of $426.39 suggests a significant upside of +11.4% from its current price of $382.59, signaling confidence in its near-term performance.
In contrast, while Advanced Micro Devices (AMD) also holds a “Buy” consensus rating from a larger pool of 70 analysts, the percentage of “Buy” recommendations is lower at 67.1%. Furthermore, the average analyst price target for AMD is $310.86, which actually represents a potential downside of -7.8% from its current price of $337.11. This disparity in price target upside, coupled with AMAT’s higher buy rating percentage, suggests that while both stocks are generally viewed positively, analysts foresee more immediate capital appreciation potential in AMAT. Therefore, for investors weighing analyst opinions and considering AMAT vs AMD target price comparison 2026, AMAT receives a more bullish outlook.

Should I buy AMAT or AMD stock in 2026?

For investors primarily seeking strong growth momentum in the technology sector, Advanced Micro Devices (AMD) presents a more compelling narrative. Its impressive year-over-year revenue growth of 34.3% far outpaces Applied Materials (AMAT)’s 4.4%, indicating AMD’s aggressive expansion and ability to capture market share in competitive segments like CPUs, GPUs, and data center solutions. This makes AMD a strong contender for those willing to accept a higher valuation in exchange for potentially greater long-term appreciation fueled by innovation and market expansion.
Conversely, value-oriented investors conducting an AMAT vs AMD fundamentals and valuation analysis might find Applied Materials (AMAT) more appealing. AMAT trades at a significantly lower P/E ratio of 38.7x compared to AMD’s 126.76x, suggesting its earnings are priced more attractively. While AMD has a lower P/B ratio and a less negative DCF upside, AMAT’s superior net margin of 27.78% (vs. AMD’s 12.51%) and higher FCF yield highlight its operational efficiency and stronger profitability. These factors combined could offer a more stable and potentially less volatile investment for those prioritizing fundamental strength and a more reasonable valuation.
Regarding income generation, neither AMAT nor AMD currently stands out as an income stock, as both companies have a 0.0% dividend yield. Investors looking for regular dividend payments would need to consider other options. The choice between AMAT and AMD in 2026 ultimately depends on an investor’s risk tolerance and investment objectives: AMD for aggressive growth, and AMAT for stronger profitability, more attractive P/E valuation, and a more favorable analyst consensus. This is not investment advice; please conduct your own thorough research.

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