Applied Materials Stock vs Competition: Who Wins?
Applied Materials (AMAT) stock has risen impressively over the past year, though it trails peers like Lam Research (LRCX). A deeper dive reveals AMAT’s robust profitability with strong margins and a moderate PE ratio of 36.29 compared to the peer average. However, its LTM revenue growth of 4.3% lags some rivals, potentially limiting upside amidst evolving semiconductor capital expenditure cycles and intense AI-driven demand.
- AMAT’s 29.9% operating margin is high but trails TXN (34.8%), reflecting TXN’s stable, high-margin analog processing focus.
- AMAT’s 4.4% revenue growth (LTM) is low; AI computing infrastructure demand drives it, lagging LRCX’s AI/memory and TXN’s analog recovery.
- AMAT’s stock gained 72.8% at a 36.3 P/E due to AI confidence, but LRCX delivered stronger returns (177%) from its leading AI chip etching/deposition tech.
Here’s how Applied Materials stacks up across size, valuation, and profitability versus key peers.
| AMAT | TXN | MCHP | PXLW | LRCX | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 254.0 | 178.7 | 40.4 | 0.0 | 281.8 |
| Revenue ($ Bil) | 28.4 | 17.3 | 4.2 | 0.0 | 19.6 |
| PE Ratio | 36.3 | 35.4 | -218.2 | -1.5 | 48.5 |
| 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 | 72.8% | 9.4% | 36.8% | -38.7% | 182.3% |
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
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| 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 | 36.3 | 29.5 | 18.7 | 19.9 | |
| TXN | 35.4 | – | 33.0 | 26.2 | 17.8 |
| MCHP | -218.2 | -68473.5 | 16.3 | 22.2 | |
| PXLW | -1.5 | – | -1.1 | -1.6 | -4.4 |
| LRCX | 48.5 | 41.1 | 24.8 | 23.5 |
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