AMAT vs AMD: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Advanced Micro Devices, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-06.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Advanced Micro Devices, Inc. · Technology
$555.79
+24.0% upside to fair value
Grade B
QuantHub Verdict
AMD has more upside to fair value
(+24.0%).
AMAT trades at a lower forward P/E
(56.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
AMD |
| Current Price |
$603.04 |
$555.79 |
| Fair Value Estimate |
$331.67 |
$689.29 |
| Upside to Fair Value |
-45.0%
|
+24.0%
|
| Market Cap |
$478.8B |
$906.3B |
| Forward P/E |
56.4x
|
177.7x
|
| EV / EBITDA |
43.0x
|
110.2x
|
| Price / Sales |
16.5x
|
24.1x
|
| Price / FCF |
80.3x
|
105.3x
|
| Revenue Growth YoY |
+11.4%
|
+37.8%
|
| Gross Margin |
49.0%
|
50.3%
|
| Operating Margin |
29.5%
|
11.7%
|
| Return on Equity |
39.8%
|
8.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
0.95%
|
| Analyst Consensus |
Strong Buy
|
Strong Buy
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company specializing in high-performance CPUs and GPUs with a competitive moat driven by technical innovation and ecosystem scale. Under CEO Dr. Lisa Su's leadership since 2014, AMD has transformed from a $2 billion market cap to over $90 billion, gaining significant market share from Intel and Nvidia. The company reported $34.6 billio…
Accumulation Zones
| Metric |
AMAT |
AMD |
| Zone Low |
$248.75 |
$516.97 |
| Zone High |
$281.92 |
$585.90 |
| In Buy Zone? |
No
|
Yes
|