AMAT vs NVMI: How Applied Materials and Nova Ltd. 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 NVMI 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 NVMI 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

Nova Ltd. (NASDAQ and Tel Aviv: NVMI), headquartered in Rehovot, Israel, builds process-control metrology for semiconductor manufacturing. Metrology is measurement rather than inspection: instead of hunting for defects, Nova's systems characterize the dimensions, profiles, thin-film thickness, and material composition of structures on a wafer while it is still moving through the line. The portfolio splits into a Dimensional Metrology Division built on optical techniques (integrated and standalone optical critical dimension, or OCD, scatterometry) and a Materials Metrology Division built on x-ray methods, plus chemical metrology acquired with ancosys in 2022 and a modeling and analytics software layer that is arguably the real moat. A meaningful share of Nova's tools are integrated, meaning they are bolted directly onto another vendor's deposition or etch equipment, which makes Nova both a supplier to fabs and a partner to process-equipment makers. Customers are the logic foundries, memory makers, and packaging houses in Taiwan, Korea, Japan, China, and the United States, and manufacturing sits in Israel, Germany, and the United States, with a new Asian facility targeted to be operational by the end of 2026.

Full NVMI 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.
• NVMI drivers: Gate-all-around and the rising metrology intensity of leading-edge logic; Advanced packaging and high-bandwidth memory.

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 NVMI, nova sells capital equipment into an industry that has historically swung hard in both directions, so a pause in leading-edge capex at any of the handful of customers that matter would show up in orders within a quarter or two, and the current multiple leaves little room for that.

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; NVMI 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 NVMI 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.

NVMI. Market capitalization is roughly $12.5B on about 31.8M shares outstanding, which puts the stock near a 45x forward earnings multiple against roughly 25x for the average US semiconductor name, and above Nova's own 15-year average price-to-earnings ratio of about 37x. The premium is being paid for a record set of results, not a promise: fiscal 2025 revenue of ~$880.6M grew ~31% with GAAP net income of ~$259.2M, and both 2026 quarters so far set records with margins holding in the mid-50s. The offset is a 52-week range of roughly $233 to $616, which is the market repricing the same business by more than 2x inside a year as views on the leading-edge capex cycle shift.

Headline figures (approximate, early 2026): AMAT shows revenue (ttm) ~$28 billion, operating margin ~30%, net income (ttm) ~$8 billion, eps (ttm) ~$9.50; NVMI shows revenue (ttm) ~$903M (trailing figure, before the record June quarter fully rolls in), q2 2026 revenue ~$255.0M (+16% YoY, +8% QoQ, a company record), gross margin (q2 2026) ~56.5% GAAP, ~58% non-GAAP, operating margin (q2 2026) ~30% GAAP, ~33% non-GAAP.

AMAT and NVMI 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 NVMI exposure against your real portfolio. It is not an investment adviser.