AMAT vs KLAC: How Applied Materials and KLA Corporation Compare (2026)

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. AMAT and KLAC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined AMAT and KLAC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Applied Materials is the largest semiconductor equipment company in the world by revenue. The company manufactures the wafer fabrication equipment that semiconductor fabs use to deposit, etch, polish, and inspect silicon wafers. AMAT does not make lithography systems (ASML has that monopoly) but is essentially everywhere else in the fab equipment market.

Full AMAT guide

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and broader electronics industries worldwide. Its largest segment, Semiconductor Process Control, provides wafer and reticle inspection, metrology, and data analytics systems that chipmakers use to detect defects and measure critical dimensions during fabrication. A Specialty Semiconductor Process segment sells advanced vacuum deposition and etching tools, while a PCB and Component Inspection segment serves electronics manufacturers inspecting printed circuit boards and flat panel displays. KLA earns revenue through equipment sales and a growing base of high-margin service contracts that account for roughly a quarter of total revenue, providing resilience across equipment spending cycles.

Full KLAC guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• AMAT drivers: Leading-edge logic and memory capex; Trailing-edge capacity expansion.
• KLAC drivers: AI Infrastructure Drives Record Wafer Fab Equipment Spending; Near-Monopoly Market Position with Deep Switching Costs.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Semiconductor capex is cyclical. For KLAC, the most acute near-term risk is U.S.-China export controls: restrictions already introduced have disrupted KLA's backlog, forced the return of customer deposits, and may further limit sales to Chinese fabs, which represent a meaningful share of global semiconductor investment.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick AMAT if you believe its drivers more; KLAC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AMAT and KLAC guides.

AMAT. AMAT trades at a more modest multiple than fabless designers or NVIDIA, reflecting the cyclical nature of equipment spending. The premium versus the S&P 500 average comes from the structural growth in semiconductor capex and the service revenue durability.

KLAC. KLA's fiscal 2025 revenue grew approximately 24% year over year, reflecting the AI-driven acceleration in semiconductor capital equipment spending, and net income grew even faster at roughly 47% as operating leverage amplified revenue gains into margin expansion. The trailing P/E of approximately 73x is well above KLA's own five-year average of roughly 26x, indicating that the market is pricing in continued strong growth from AI infrastructure investment. Investors weighing the valuation should note that the company generates substantial free cash flow and has raised its dividend for seventeen consecutive years, but the premium multiple leaves limited margin of safety if growth decelerates or export restrictions intensify.

Headline figures (approximate, early 2026): AMAT shows revenue (ttm) ~$28 billion, operating margin ~30%, net income (ttm) ~$8 billion, eps (ttm) ~$9.50; KLAC shows revenue (fy2025, ended june 30, 2025) ~$12.16 billion, revenue (ttm through sept 30, 2025) ~$12.52 billion, net income (fy2025) ~$4.06 billion, gross margin (ttm) ~61%.

AMAT and KLAC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AMAT and KLAC exposure against your real portfolio. It is not an investment adviser.