Quick verdict: AMAT vs AMD in 2026

Applied Materials (AMAT) holds an overall edge according to our scorecard, securing 5 wins out of 8 comparable metrics, driven by superior profitability and analyst sentiment on buy ratings. However, Advanced Micro Devices (AMD) stands out as the clear growth leader with significantly higher revenue growth and offers substantially more price target upside from analyst consensus. AMAT demonstrates greater efficiency in margins, while AMD appears relatively better positioned from a discounted cash flow (DCF) perspective. 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 2026-03-28.

AMAT vs AMD valuation comparison

When assessing the AMAT vs AMD valuation, traditional metrics like the Price-to-Earnings (P/E) ratio and Price-to-Book (P/B) ratio currently present as 0x for both companies. This indicates that these specific metrics are not providing actionable insights at present, possibly due to zero or negative reported earnings or book value according to the data source. Therefore, investors seeking to understand the relative cheapness or expensiveness of these stocks must look beyond these conventional measures.

A more insightful metric for this AMAT vs AMD valuation comparison is the Discounted Cash Flow (DCF) upside. Here, Applied Materials shows a DCF upside of -210.1%, suggesting a significant overvaluation based on its projected future cash flows. In contrast, Advanced Micro Devices presents a DCF upside of -68.8%, which, while still indicating overvaluation, is substantially less pronounced than AMAT’s. From this perspective, AMD appears to be relatively “cheaper” or less overvalued compared to AMAT, offering a better proposition for value-oriented investors despite both showing negative DCF upsides. Both companies are rated as “Buy” by analysts, but their FMP ratings diverge, with AMAT at B+ and AMD at B-, further hinting at nuanced valuation perspectives that go beyond the 0x multiples.

AMAT vs AMD growth comparison

In a direct AMAT vs AMD growth comparison, Advanced Micro Devices (AMD) emerges as the undisputed leader in terms of recent revenue expansion. AMD reported a robust year-over-year revenue growth of +34.3%, signaling strong momentum and demand for its products and solutions in the rapidly evolving technology landscape. This substantial growth rate far outpaces Applied Materials (AMAT), which posted a more modest revenue growth of +4.4% over the same period. While both companies operate within the broader technology sector, AMD’s higher growth suggests it is capturing market share or benefiting significantly from booming segments like AI, data centers, and high-performance computing.

The stark difference in revenue growth highlights differing trajectories for these two tech giants. AMD’s aggressive expansion can imply higher future earnings potential, although it often comes with higher investment and potentially lower initial margins, as seen with AMD’s net margin of 12.51% compared to AMAT’s 27.78%. For investors prioritizing rapid expansion and market penetration, AMD clearly possesses stronger momentum. Conversely, AMAT’s more moderate growth, combined with its strong profitability, suggests a more mature yet highly efficient business model focused on optimizing its position in the semiconductor equipment market. Understanding this AMAT vs AMD fundamentals and valuation aspect is crucial for deciding which stock aligns with an investor’s growth objectives.

AMAT vs AMD profitability

When analyzing AMAT vs AMD profitability, Applied Materials (AMAT) exhibits significantly stronger performance in key margin metrics. AMAT boasts an impressive net margin of 27.78%, more than double that of Advanced Micro Devices (AMD), which recorded a net margin of 12.51%. This indicates that AMAT is far more efficient at converting its revenue into actual profit, suggesting superior cost management, pricing power, or a less capital-intensive operational model within its niche of semiconductor equipment manufacturing. Similarly, AMAT’s EBITDA margin stands at 35.04%, substantially higher than AMD’s 21.03%, further underscoring its operational efficiency and robust earnings before non-cash expenses.

While the Return on Equity (ROE) for both companies is currently reported as N/A%, limiting a direct comparison on shareholder returns, the Free Cash Flow (FCF) yield provides another angle on cash generation. AMAT slightly edges out AMD with an FCF yield of 2.31% compared to AMD’s 2.05%. This metric suggests that AMAT generates a marginally higher amount of cash relative to its market capitalization, which is vital for reinvestment, debt reduction, or shareholder returns. Overall, for investors prioritizing strong and consistent profitability, AMAT demonstrates a clear advantage over AMD, highlighting its capacity to generate more cash and higher net profits from its operations.

Analyst ratings: AMAT vs AMD

A look into analyst ratings for AMAT vs AMD reveals a generally positive sentiment for both companies, though with distinct nuances. Applied Materials (AMAT) enjoys a higher percentage of “Buy” ratings, with 79.3% of 53 analysts recommending it as a buy. This strong consensus points to a high level of confidence in AMAT’s business prospects and market position within the semiconductor equipment industry. The average price target for AMAT is $420.83, suggesting a potential upside of +24.8% from its current price of $337.17.

Advanced Micro Devices (AMD), while also holding a “Buy” consensus, has a slightly lower percentage of “Buy” ratings at 68.1% from a larger pool of 69 analysts. Despite this, analysts are more optimistic about AMD’s price appreciation potential. The consensus target price for AMD is $293.26, indicating a substantial upside of +45.2% from its current price of $201.99. This suggests that while more analysts are bullish on AMAT, those covering AMD see a greater potential for capital gains, possibly driven by AMD’s higher growth trajectory and strategic initiatives in competitive markets. Therefore, for investors seeking significant price appreciation, AMD appears to be the preferred choice based on analyst price targets, even if AMAT has a broader “Buy” endorsement.

Should I buy AMAT or AMD stock in 2026?

Deciding whether should I buy AMAT or AMD stock in 2026 largely depends on an investor’s individual strategy and risk tolerance, as both companies offer compelling, yet different, investment profiles. For growth-oriented investors focused on robust revenue expansion and market momentum, AMD presents a more attractive option. Its impressive +34.3% year-over-year revenue growth significantly outpaces AMAT’s +4.4%, demonstrating stronger market penetration and potentially higher future earnings acceleration, particularly in high-growth segments like AI and data centers. Furthermore, analysts project a considerably higher price target upside for AMD at +45.2%, suggesting a greater potential for capital appreciation.

For value investors, the AMAT vs AMD fundamentals and valuation picture requires careful consideration. Traditional P/E and P/B ratios are reported as 0x for both, making them uninformative for direct comparison. However, AMD’s DCF upside of -68.8% is notably better than AMAT’s -210.1%, implying AMD is relatively less overvalued by this forward-looking metric. This could suggest that for investors looking for a “better value” within the tech sector, or at least less relative overvaluation, AMD might offer a more compelling entry point, even if still indicating overvaluation.

Income-focused investors will find a slight edge with AMAT, which offers a modest dividend yield of 0.01%, whereas AMD currently pays no dividend (0%). While neither company is a significant dividend payer, AMAT provides a token return, appealing to those who prefer any form of income from their investments. Ultimately, the choice between AMAT vs AMD stock comparison 2026 boils down to a preference for AMD’s high growth and greater potential upside versus AMAT’s superior profitability, operational efficiency, and marginal dividend. This is not investment advice; always conduct your own thorough research.

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