Head to head · SEC data as of July 10, 2026

Applied Materials vs Lam Research: which has the stronger fundamentals?

Applied Materials

85

Quality score · out of 100

Lam Research

88

Quality score · out of 100

On paper this one is nearly a draw: Applied Materials scores 85 and Lam Research scores 88 out of 100 in our fundamental quality model. Lam Research wins on ROE (63.4% vs 35.6%), cash generation (FCF) (27.7% vs 18.4%) and revenue growth (14.3% vs 10%).

The metrics, head to head

MetricApplied MaterialsLam Research
Quality score (0-100)8588
Net margin29.3%30.9%
Gross margin49%50%
ROE35.6%63.4%
Net debt/EBITDA0.02×-0.04×
FCF margin18.4%27.7%
Revenue growth (annualized)10%14.3%
Earnings growth (annualized)19.9%20.9%

TTM metrics with official SEC data, refreshed daily. Bold green marks the winner of each metric. A dash means the metric doesn't apply or isn't reliable.

What each one does

Applied Materials. Applied Materials is the world's largest maker of the machines that make chips. It sells the equipment that semiconductor fabs (like TSMC, Intel or Samsung) need to produce microchips. It's a critical 'picks and shovels' supplier to the whole industry.

Lam Research. Lam Research builds the machines chips are made with: etch and deposition equipment that major manufacturers (TSMC, Samsung, Intel, the memory makers) need to produce ever-denser semiconductors.

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What this comparison doesn't tell you

The score measures business quality, not whether the stock is cheap or expensive: the better company can be the worse investment if you overpay. For the valuation verdict, enter each one's current price in the analyzer:

Analyze Applied Materials →Analyze Lam Research →

Frequently asked questions

Who has the stronger fundamentals today, Applied Materials or Lam Research?

They're practically tied: Applied Materials and Lam Research score 88 and 85 out of 100 in the StockSemáforo model (profitability, growth and financial strength, built on official SEC data). The score is recomputed nightly with the latest filings.

Does that make Lam Research the better investment?

No. The score measures business quality, not valuation: an excellent company can trade at an excessive price and be a poor investment at that price. To find out whether it's cheap or expensive, enter its current quote in the StockSemáforo analyzer.

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