Is Applied Materials Stock Outperforming Its Rivals?
Applied Materials’ stock has delivered a robust 95% return over the past year amidst a “Giga-cycle” for semiconductor equipment driven by AI demand. But how does it truly measure against key peers capitalizing on this boom? An examination reveals solid profitability with 29.86% LTM operating margins and 20.09% FCF margins, alongside a moderate 40.32 PE ratio. However, its 4.39% LTM revenue growth trails some competitors, potentially limiting upside if specific high-growth segments continue to drive peer outperformance.
- AMAT’s 29.9% operating margin, high for equipment, trails TXN’s 34.7%, reflecting TXN’s superior analog chip profitability and efficient 300mm fabs.
- AMAT’s 4.4% revenue growth lags LRCX’s 23.7% from the memory/AI boom and TXN’s 10% in industrial/auto, signaling diverse market segment exposure.
- AMAT’s 94.5% stock gain with a 40.3 PE reflects strong performance, yet LRCX delivered stronger returns from its AI memory and advanced packaging focus.
Here’s how Applied Materials stacks up across size, valuation, and profitability versus key peers.
| AMAT | TXN | MCHP | PXLW | LRCX | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 282.2 | 205.6 | 42.5 | 0.0 | 295.6 |
| Revenue ($ Bil) | 28.4 | 17.7 | 4.4 | 0.0 | 20.6 |
| PE Ratio | 40.3 | 41.1 | -617.5 | -1.3 | 47.6 |
| LTM Revenue Growth | 4.4% | 13.0% | -8.1% | -38.7% | 26.8% |
| LTM Operating Margin | 29.9% | 34.7% | 6.3% | -72.2% | 33.8% |
| LTM FCF Margin | 20.1% | 14.7% | 18.8% | -61.0% | 30.2% |
| 12M Market Return | 94.5% | 29.0% | 49.4% | -40.8% | 185.3% |
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 | 13.0% | 13.0% | -10.7% | -12.5% | |
| MCHP | -8.1% | -42.3% | -9.5% | 23.7% | |
| PXLW | -38.7% | – | -27.6% | -14.9% | 27.3% |
| LRCX | 26.8% | 23.7% | -14.5% | 1.2% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 29.9% | 29.9% | 28.9% | 28.9% | |
| TXN | 34.7% | 34.7% | 34.1% | 41.8% | |
| MCHP | 6.3% | 8.5% | 33.5% | 36.9% | |
| PXLW | -72.2% | – | -66.3% | -48.0% | -24.0% |
| LRCX | 33.8% | 32.0% | 28.7% | 29.9% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| AMAT | 40.3 | 29.5 | 18.7 | 19.9 | |
| TXN | 41.1 | 31.5 | 35.6 | 23.8 | |
| MCHP | -617.5 | -68473.5 | 16.3 | 22.2 | |
| PXLW | -1.3 | – | -1.1 | -1.6 | -4.4 |
| LRCX | 47.6 | 41.1 | 24.8 | 23.5 |
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