AMAT vs NVDA: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and NVIDIA Corporation — 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
NVIDIA Corporation · Technology
$210.69
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NVDA has more upside to fair value
(+45.0%).
NVDA trades at a lower forward P/E
(32.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
NVDA |
| Current Price |
$603.04 |
$210.69 |
| Fair Value Estimate |
$331.67 |
$305.50 |
| Upside to Fair Value |
-45.0%
|
+45.0%
|
| Market Cap |
$478.8B |
$5,103.1B |
| Forward P/E |
56.4x
|
32.1x
|
| EV / EBITDA |
43.0x
|
26.5x
|
| Price / Sales |
16.5x
|
20.1x
|
| Price / FCF |
80.3x
|
42.9x
|
| Revenue Growth YoY |
+11.4%
|
+85.2%
|
| Gross Margin |
49.0%
|
74.1%
|
| Operating Margin |
29.5%
|
64.0%
|
| Return on Equity |
39.8%
|
111.7%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
2.33%
|
| 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…
NVIDIA Corporation is a leading technology company specializing in semiconductors, particularly GPUs and AI accelerators, with a dominant market position in AI training markets holding over 80% share. The company exhibits exceptional business quality with a founder-led management team boasting over 30 years of continuous leadership, very high profitability with gross margins above 74% and net mar…
Accumulation Zones
| Metric |
AMAT |
NVDA |
| Zone Low |
$248.75 |
$229.12 |
| Zone High |
$281.92 |
$259.68 |
| In Buy Zone? |
No
|
Yes
|