Is Applied Materials Stock Outperforming Its Rivals?
Applied Materials (AMAT) stock has outperformed most peers over the past year, but how does it measure up against rivals in the ongoing semiconductor equipment boom? A closer look reveals solid profitability and moderate growth, supported by a reasonable valuation. Its 12-month return, however, trails top-performer Lam Research, and growth lags Texas Instruments, indicating a balanced outlook.
- AMAT’s 30.1% operating margin, while high, trails TXN’s 34.8%, reflecting TXN’s stable, high-margin analog/embedded processing vs. AMAT’s equipment focus.
- AMAT’s 6.6% revenue growth, outpacing MCHP/PXLW, lags TXN/LRCX, highlighting stronger AI chip manufacturing demand for peers.
- AMAT stock gained 46.2% (PE 21.4), yet LRCX delivered stronger returns, driven by its superior etching/deposition tech crucial for AI chips.
Here’s how Applied Materials stacks up across size, valuation, and profitability versus key peers.
| AMAT | TXN | MCHP | PXLW | LRCX | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 211.7 | 159.3 | 30.6 | 0.0 | 200.0 |
| Revenue ($ Bil) | 28.6 | 17.3 | 4.2 | 0.0 | 19.6 |
| PE Ratio | 21.4 | 33.1 | -187.4 | -1.3 | 29.1 |
| LTM Revenue Growth | 6.6% | 9.9% | -23.4% | -44.0% | 25.7% |
| LTM Operating Margin | 30.1% | 34.8% | 3.7% | -80.6% | 33.0% |
| LTM FCF Margin | 20.4% | 12.0% | 17.9% | -76.0% | 28.3% |
| 12M Market Return | 46.2% | -10.3% | -16.8% | -32.7% | 103.6% |
For more details on Applied Materials, read Buy or Sell AMAT Stock. Below we compare AMAT’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 6.6% | – | 2.5% | 2.8% | 11.8% |
| TXN | 9.9% | – | -10.7% | -12.5% | 9.2% |
| MCHP | -23.4% | -42.3% | -9.5% | 23.7% | |
| PXLW | -44.0% | – | -27.6% | -14.9% | 27.3% |
| LRCX | 25.7% | 23.7% | -14.5% | 1.2% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 30.1% | – | 28.9% | 28.9% | 30.2% |
| TXN | 34.8% | – | 34.1% | 41.8% | 51.9% |
| MCHP | 3.7% | 8.5% | 33.5% | 36.9% | |
| PXLW | -80.6% | – | -66.3% | -48.0% | -24.0% |
| LRCX | 33.0% | 32.0% | 28.7% | 29.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 21.4 | – | 18.7 | 19.9 | 13.0 |
| TXN | 33.1 | – | 35.6 | 23.8 | 17.3 |
| MCHP | -187.4 | -61628.3 | 25.6 | 17.3 | |
| PXLW | -1.3 | – | -1.5 | -2.8 | -6.0 |
| LRCX | 29.1 | 17.3 | 26.9 | 12.6 |
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