AMAT vs LRCX: How Applied Materials and Lam Research Compare (2026)
Last updated July 2026
Short answer
AMAT and LRCX are similarly sized, but AMAT trades noticeably cheaper on forward earnings (39.68x vs 48.72x): the market is paying up for LRCX's profile and pricing AMAT more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
AMAT vs LRCX: the tie-breaker metrics
Same yardstick, side by side (as of July 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.
| Metric | AMAT | LRCX | What it tells you |
|---|---|---|---|
| Market cap | $516.80B | $489.30B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 39.68 | 48.72 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 61.35 | 74.10 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.67 | 1.87 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 85% of range | 86% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 21.61 | 46.23 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: AMAT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how AMAT and LRCX affect your concentration
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 LRCX 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 LRCX 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.
What does Applied Materials (AMAT) do?
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.
What does Lam Research (LRCX) do?
Lam Research is one of the largest semiconductor equipment makers in the world, specializing in wafer-fabrication tools used to build integrated circuits. It is a leader in two critical process steps: etch (precisely removing material to carve nanoscale features) and deposition (laying down ultra-thin films of material), along with related cleaning and surface-preparation systems. These steps are repeated hundreds of times to build modern 3D chip structures, and Lam's tools are essential to manufacturing advanced logic and especially memory chips (DRAM and NAND flash). Lam sells its systems to the world's leading chipmakers and foundries, then earns a large, recurring stream of revenue from spare parts, upgrades, and services for its big installed base of tools, which smooths the cyclical equipment-sales business. Demand is driven by capital spending from semiconductor manufacturers, which rises and falls with chip-industry cycles but trends structurally higher as AI, data centers, and advanced devices require more and more sophisticated chips. Headquartered in Fremont, California, Lam is a key enabler of leading-edge and memory chip production.
AMAT vs LRCX: how do they differ?
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.
- LRCX drivers: AI-driven chip-capex supercycle; Leadership in etch and deposition.
Which fits which kind of investor
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 LRCX, semiconductor equipment is highly cyclical, and Lam's new-tool sales swing sharply with chipmaker capital-spending cycles, especially in memory, which is among the most volatile end markets.
AMAT or LRCX: which should you pick?
AMAT vs LRCX: the full fundamentals
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.
LRCX. Lam trades at a multiple reflecting both strong secular demand for chip equipment and the cyclicality of the memory-heavy equipment market. The valuation embeds expectations of a structural rise in semiconductor capital spending driven by AI, balanced against export-control risk and the swing factor of memory capex. The large, higher-margin installed-base service revenue supports a premium over a purely cyclical equipment maker. Lam also returns substantial cash through buybacks and a growing dividend.
Headline figures (approximate, early 2026): AMAT shows revenue (ttm) ~$28 billion, operating margin ~30%, net income (ttm) ~$8 billion, eps (ttm) ~$9.50; LRCX shows revenue (ttm) ~$16 billion, operating margin ~30%, net income (ttm) ~$4-5 billion, p/e (ttm) ~25x.
The bottom line: AMAT vs LRCX
AMAT and LRCX 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 LRCX exposure against your real portfolio. It is not an investment adviser.
Build a basket around AMAT with Walnut
Use Applied Materials as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is the difference between AMAT and LRCX?
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Applied Materials is the largest semiconductor equipment company in the world by revenue. Lam Research is one of the largest semiconductor equipment makers in the world, specializing in wafer-fabrication tools used to build integrated circuits. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AMAT or LRCX the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AMAT or LRCX?
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On forward P/E (as of July 2026), AMAT trades at 39.68x and LRCX at 48.72x, so AMAT is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AMAT and LRCX?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AMAT vs LRCX?
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AMAT: Semiconductor capex is cyclical. China exposure (where export controls have already cut some revenue) is the largest single near-term risk; further restrictions could expand. LRCX: Semiconductor equipment is highly cyclical, and Lam's new-tool sales swing sharply with chipmaker capital-spending cycles, especially in memory, which is among the most volatile end markets. US export restrictions on advanced chipmaking equipment to China are a significant headwind, since China has been a large customer; tighter rules can cut a meaningful slice of revenue. Customer concentration among a handful of large chipmakers, intense competition from Applied Materials and Tokyo Electron, and sensitivity to memory pricing and macro demand all add risk. A downturn in chip capex or escalating trade restrictions would pressure results and the stock.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AMAT or LRCX; figures are approximate and dated (as of July 2026). Verify current data before investing.