Is Applied Materials Stock Outperforming Its Rivals?
Applied Materials’ (AMAT) stock has delivered a strong return over the past year, though it was outperformed by a peer like Lam Research. But how does it truly measure up against semiconductor equipment peers rapidly advancing in the chip industry? As of January 9, 2026, a closer look reveals robust profitability and moderate valuation for AMAT. While its LTM revenue growth is positive, it trails some industry leaders such as Lam Research, suggesting varying momentum in the evolving semiconductor landscape, which is experiencing an “AI Infrastructure Supercycle” and strong growth in wafer fab equipment sales through 2026.
- AMAT’s 29.9% operating margin, below TXN’s 34.8%, hints at TXN’s cost efficiency from its analog and embedded processing focus.
- AMAT’s 4.4% revenue growth, lagging TXN/LRCX, reflects slower memory segment demand versus strong analog/AI chip equipment.
- AMAT’s 71.9% stock gain and 34.2 P/E, trailing LRCX’s superior returns, signals LRCX’s stronger AI chip tech advantage.
Here’s how Applied Materials stacks up across size, valuation, and profitability versus key peers.
| AMAT | TXN | MCHP | PXLW | LRCX | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 239.4 | 173.0 | 40.6 | 0.0 | 276.1 |
| Revenue ($ Bil) | 28.4 | 17.3 | 4.2 | 0.0 | 19.6 |
| PE Ratio | 34.2 | 34.3 | -219.4 | -1.5 | 47.5 |
| LTM Revenue Growth | 4.4% | 9.9% | -23.4% | -38.7% | 25.7% |
| LTM Operating Margin | 29.9% | 34.8% | 3.7% | -72.2% | 33.0% |
| LTM FCF Margin | 20.1% | 12.0% | 17.9% | -61.0% | 28.3% |
| 12M Market Return | 71.9% | 2.5% | 37.6% | -27.6% | 186.0% |
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 | 4.4% | 4.4% | 2.5% | 2.8% | |
| TXN | 9.9% | – | -10.7% | -12.5% | 9.2% |
| MCHP | -23.4% | -42.3% | -9.5% | 23.7% | |
| PXLW | -38.7% | – | -27.6% | -14.9% | 27.3% |
| LRCX | 25.7% | 23.7% | -14.5% | 1.2% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 29.9% | 29.9% | 28.9% | 28.9% | |
| TXN | 34.8% | – | 34.1% | 41.8% | 51.9% |
| MCHP | 3.7% | 8.5% | 33.5% | 36.9% | |
| PXLW | -72.2% | – | -66.3% | -48.0% | -24.0% |
| LRCX | 33.0% | 32.0% | 28.7% | 29.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 34.2 | 29.5 | 18.7 | 19.9 | |
| TXN | 34.3 | – | 33.0 | 26.2 | 17.8 |
| MCHP | -219.4 | -68473.5 | 16.3 | 22.2 | |
| PXLW | -1.5 | – | -1.1 | -1.6 | -4.4 |
| LRCX | 47.5 | 41.1 | 24.8 | 23.5 |
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