AMAT vs. LRCX

Last updated Jun 3, 2026

AMAT (Applied Materials, Inc.) and LRCX (Lam Research Corporation) are both stocks. Both operate in the Semiconductor Equipment & Materials industry within the Technology sector. Over the past 10 years, AMAT returned 36.47%/yr vs 46.72%/yr for LRCX. A 0.69 correlation means they provide meaningful diversification when combined.

Performance

AMAT vs. LRCX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Applied Materials, Inc. (AMAT) and Lam Research Corporation (LRCX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with AMAT having a 91.16% return and LRCX slightly higher at 95.59%. Over the past 10 years, AMAT has underperformed LRCX with an annualized return of 36.47%, while LRCX has yielded a comparatively higher 46.72% annualized return.

AMAT

• 1D: 6.96%
• 1M: 26.11%
• YTD: 91.16%
• 6M: 85.15%
• 1Y: 213.88%
• 3Y*: 55.09%
• 5Y*: 30.24%
• 10Y*: 36.47%

LRCX

• 1D: 5.45%
• 1M: 30.26%
• YTD: 95.59%
• 6M: 112.00%
• 1Y: 308.41%
• 3Y*: 77.68%
• 5Y*: 40.87%
• 10Y*: 46.72%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AMAT vs. LRCX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AMAT Applied Materials, Inc.	91.16%	59.60%	1.13%	67.97%	-37.54%	83.64%	43.29%	89.86%	-34.92%	59.86%
LRCX Lam Research Corporation	95.59%	139.16%	-6.84%	88.63%	-40.72%	53.66%	64.18%	119.33%	-24.40%	76.21%

Correlation

The correlation between AMAT and LRCX is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990	0.69

The correlation between AMAT and LRCX shifts across timeframes, from 0.69 (all time) to 0.91 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AMAT : $391.55B LRCX : $422.29B
EPS AMAT : $10.61 LRCX : $5.29
PE Ratio AMAT : 46.18 LRCX : 63.24
PEG Ratio AMAT : 5.88 LRCX : 4.79
PS Ratio AMAT : 13.54 LRCX : 19.57
PB Ratio AMAT : 16.38 LRCX : 39.90
Total Revenue (TTM) AMAT : $29.02B LRCX : $21.68B
Gross Profit (TTM) AMAT : $14.21B LRCX : $10.84B
EBITDA (TTM) AMAT : $9.92B LRCX : $6.10B

Return for Risk

AMAT vs. LRCX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AMAT

AMAT Risk / Return Rank: 97
AMAT Sharpe Ratio Rank: 98
AMAT Sortino Ratio Rank: 95
AMAT Omega Ratio Rank: 95
AMAT Calmar Ratio Rank: 97
AMAT Martin Ratio Rank: 97

LRCX

LRCX Risk / Return Rank: 98
LRCX Sharpe Ratio Rank: 99
LRCX Sortino Ratio Rank: 97
LRCX Omega Ratio Rank: 97
LRCX Calmar Ratio Rank: 99
LRCX Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AMAT vs. LRCX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Applied Materials, Inc. (AMAT) and Lam Research Corporation (LRCX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AMAT	LRCX	Difference
Sharpe ratio Return per unit of total volatility	4.67	6.23	-1.56
Sortino ratio Return per unit of downside risk	4.16	5.00	-0.84
Omega ratio Gain probability vs. loss probability	1.59	1.66	-0.07
Calmar ratio Return relative to maximum drawdown	10.06	15.84	-5.79
Martin ratio Return relative to average drawdown	28.81	53.96	-25.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AMAT vs. LRCX - Sharpe Ratio Comparison

The current AMAT Sharpe Ratio is 4.67, which is comparable to the LRCX Sharpe Ratio of 6.23. The chart below compares the historical Sharpe Ratios of AMAT and LRCX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AMAT	LRCX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.67	6.23	-1.56
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.90	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.86	1.05	-0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.43	-0.01

Drawdowns

AMAT vs. LRCX - Drawdown Comparison

The maximum AMAT drawdown since its inception was -85.22%, roughly equal to the maximum LRCX drawdown of -87.90%. Use the drawdown chart below to compare losses from any high point for AMAT and LRCX.

Drawdown Indicators

	AMAT	LRCX	Difference
Max Drawdown Largest peak-to-trough decline	-85.22%	-87.90%	+2.68%
Max Drawdown (1Y) Largest decline over 1 year	-21.37%	-20.01%	-1.36%
Max Drawdown (3Y) Largest decline over 3 years	-49.88%	-47.10%	-2.78%
Max Drawdown (5Y) Largest decline over 5 years	-55.14%	-56.39%	+1.25%
Max Drawdown (10Y) Largest decline over 10 years	-55.14%	-56.39%	+1.25%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-38.81%	-28.19%	-10.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.46%	5.87%	+1.59%

Volatility

AMAT vs. LRCX - Volatility Comparison

The current volatility for Applied Materials, Inc. (AMAT) is 15.09%, while Lam Research Corporation (LRCX) has a volatility of 16.08%. This indicates that AMAT experiences smaller price fluctuations and is considered to be less risky than LRCX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AMAT	LRCX	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.09%	16.08%	-0.99%
Volatility (6M) Calculated over the trailing 6-month period	35.23%	40.17%	-4.94%
Volatility (1Y) Calculated over the trailing 1-year period	46.07%	49.86%	-3.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.57%	45.94%	-2.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	42.61%	44.58%	-1.97%

Dividends

AMAT vs. LRCX - Dividend Comparison

AMAT's dividend yield for the trailing twelve months is around 0.39%, more than LRCX's 0.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMAT Applied Materials, Inc.	0.39%	0.69%	0.93%	0.75%	1.05%	0.60%	1.01%	1.36%	2.14%	0.78%	1.24%	2.14%
LRCX Lam Research Corporation	0.30%	0.57%	1.19%	0.95%	1.53%	0.78%	1.04%	1.54%	2.79%	1.01%	1.28%	1.36%

Financials

AMAT vs. LRCX - Profitability Comparison

The chart below illustrates the profitability comparison between Applied Materials, Inc. and Lam Research Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AMAT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported a gross profit of 3.95B and revenue of 7.91B. Therefore, the gross margin over that period was 49.9%.

LRCX - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported a gross profit of 2.91B and revenue of 5.84B. Therefore, the gross margin over that period was 49.8%.

AMAT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported an operating income of 2.52B and revenue of 7.91B, resulting in an operating margin of 31.9%.

LRCX - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported an operating income of 2.05B and revenue of 5.84B, resulting in an operating margin of 35.0%.

AMAT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Applied Materials, Inc. reported a net income of 2.81B and revenue of 7.91B, resulting in a net margin of 35.5%.

LRCX - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Lam Research Corporation reported a net income of 1.83B and revenue of 5.84B, resulting in a net margin of 31.3%.

Frequently Asked Questions

Can I hold both AMAT and LRCX in my portfolio?

AMAT and LRCX have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AMAT or LRCX?

LRCX has higher volatility (16.08%) compared to AMAT (15.09%). In terms of maximum drawdown, AMAT dropped -85.22% vs LRCX's -87.90%.

Which has better risk-adjusted returns?

LRCX currently has the higher Sharpe Ratio (6.23 vs 4.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.