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 2026-05-20.
Applied Materials, Inc. · Technology
$406.91
-12.0% upside to fair value
Grade B-
High Quality
VS
Advanced Micro Devices, Inc. · Technology
$341.54
+38.2% upside to fair value
Grade C
High Quality
QuantHub Verdict
AMD has more upside to fair value
(+38.2%).
AMAT trades at a lower forward P/E
(30.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
AMD |
| Current Price |
$406.91 |
$341.54 |
| Fair Value Estimate |
$358.00 |
$472.05 |
| Upside to Fair Value |
-12.0%
|
+38.2%
|
| Market Cap |
$322.9B |
$556.9B |
| Forward P/E |
30.3x
|
128.4x
|
| EV / EBITDA |
30.2x
|
76.3x
|
| Price / Sales |
10.2x
|
16.1x
|
| Price / FCF |
51.6x
|
82.7x
|
| Revenue Growth YoY |
+11.0%
|
+34.1%
|
| Gross Margin |
49.9%
|
49.5%
|
| Operating Margin |
31.9%
|
10.7%
|
| Return on Equity |
47.0%
|
7.2%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
1.21%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the world's leading semiconductor and display equipment company, and the May 14 Q2 fiscal 2026 print materially strengthened the operating story. Revenue grew 11 percent year over year to a record $7.91 billion, non-GAAP earnings per share of $2.86 beat consensus of $2.68, and management guided Q3 to a record $8.95 billion in revenue with non-GAAP earnings per share of $3.36 …
Advanced Micro Devices, Inc. is a leading semiconductor company specializing in high-performance computing products including CPUs and GPUs, with a strong foothold in data center, client, gaming, and embedded markets. The company benefits from a durable competitive moat driven by its technology leadership in Zen/Ryzen CPUs and graphics processors, as well as strategic diversification through the …
Accumulation Zones
| Metric |
AMAT |
AMD |
| Zone Low |
$268.50 |
$354.04 |
| Zone High |
$304.30 |
$401.24 |
| In Buy Zone? |
No
|
Yes
|