AMAT vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Microsoft Corporation — 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
Microsoft Corporation · Technology
$429.25
-1.3% upside to fair value
Grade B
High Quality
QuantHub Verdict
MSFT has more upside to fair value
(-1.3%).
MSFT trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
MSFT |
| Current Price |
$406.91 |
$429.25 |
| Fair Value Estimate |
$358.00 |
$423.82 |
| Upside to Fair Value |
-12.0%
|
-1.3%
|
| Market Cap |
$322.9B |
$3,187.4B |
| Forward P/E |
30.3x
|
26.8x
|
| EV / EBITDA |
30.2x
|
17.2x
|
| Price / Sales |
10.2x
|
10.4x
|
| Price / FCF |
51.6x
|
41.2x
|
| Revenue Growth YoY |
+11.0%
|
+16.7%
|
| Gross Margin |
49.9%
|
68.6%
|
| Operating Margin |
31.9%
|
46.7%
|
| Return on Equity |
47.0%
|
33.6%
|
| Dividend Yield |
0.45% |
0% |
| FCF Yield |
1.94%
|
2.43%
|
| Analyst Consensus |
Strong Buy
|
Strong 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 …
Microsoft Corporation is a leading technology company specializing in software infrastructure, cloud computing, and productivity solutions. The company benefits from a high-quality business model characterized by durable competitive moats including strong switching costs and intangible assets such as its brand and cloud infrastructure. Under CEO Satya Nadella's leadership since 2014, Microsoft ha…
Accumulation Zones
| Metric |
AMAT |
MSFT |
| Zone Low |
$268.50 |
$317.87 |
| Zone High |
$304.30 |
$360.25 |
| In Buy Zone? |
No
|
No
|