AMAT Shares Rally 6.5% In A Day: How Does the Competition Measure Up?

-24.51%
Downside
270
Market
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Trefis
AMAT: Applied Materials logo
AMAT
Applied Materials

Here is how Applied Materials (AMAT) stacks up against its peers in size, valuation, growth and margin.

  • AMAT’s operating margin of 30.1% is high, lower than most peers – trailing KLAC (41.2%).
  • AMAT’s revenue growth of 6.6% in the last 12 months is moderate, outpacing TXN, MCHP but lagging LRCX, KLAC.
  • AMAT’s stock gained 3.0% over the past year and trades at a PE of 22.2, though peers like LRCX, KLAC delivered stronger returns.

As a quick background, Applied Materials provides manufacturing equipment, services, and software for semiconductor chip fabrication and display technologies, including LCD, OLED, and other displays for various electronic devices.

  AMAT TXN MCHP LRCX KLAC
Market Cap ($ Bil) 151.4 164.9 35.7 161.0 138.2
Revenue ($ Bil) 28.6 16.7 4.2 18.4 12.2
PE Ratio 22.2 32.7 -240.8 30.0 34.0
LTM Revenue Growth 6.6% 3.6% -35.7% 23.7% 23.9%
LTM Operating Margin 30.1% 34.9% 4.9% 32.0% 41.2%
LTM FCF Margin 20.4% 9.0% 17.1% 29.4% 30.8%
12M Market Return 3.0% -6.8% -10.7% 68.6% 44.6%

Why does this matter? AMAT just went up 17% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell AMAT Stock to see if Applied Materials holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through AMAT Dip Buyer Analysis lens.

While peer comparison is critical Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risks while giving upside exposure.

Relevant Articles
  1. LRCX, AMAT Top Teradyne Stock on Price & Potential
  2. Applied Materials Stock Surged 70%, Here’s Why
  3. LRCX, AMAT Look Smarter Buy Than Entegris Stock
  4. Buy or Sell Applied Materials Stock?
  5. Applied Materials Stock: Join the Rally at a 31% Discount
  6. Why Applied Materials Stock Jumped 40%?

Revenue Growth Comparison

  LTM 2025 2024 2023 2022
AMAT 6.6% 2.5% 2.8% 11.8%
TXN 3.6% -10.7% -12.5% 9.2%
MCHP -35.7% -42.3% -9.5% 23.7%  
LRCX 23.7% 23.7% -14.5% 1.2%  
KLAC 23.9% 23.9% -6.5% 13.9%  

Operating Margin Comparison

  LTM 2025 2024 2023 2022
AMAT 30.1% 28.9% 28.9% 30.2%
TXN 34.9% 34.1% 41.8% 51.9%
MCHP 4.9% 8.5% 33.5% 36.9%  
LRCX 32.0% 32.0% 28.7% 29.9%  
KLAC 41.2% 41.2% 37.1% 38.1%  

PE Ratio Comparison

  LTM 2025 2024 2023 2022
AMAT 22.2 18.7 19.9 13.0
TXN 32.7 35.6 23.8 17.3
MCHP -240.8 -61628.3 25.6 17.3  
LRCX 30.0 17.3 26.9 12.6  
KLAC 34.0 20.6 28.5 15.5  

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.