AMAT and KLAC are key players in the semiconductor equipment market, with KLAC having an edge.
From Nasdaq: 2025-07-03 11:20:00
Applied Materials (AMAT) and KLA Corporation (KLAC) are key players in the semiconductor equipment market, with AMAT focusing on deposition, etching, and inspection, while KLAC specializes in process control and metrology. Both companies are impacted by the AI boom driving growth in the industry.
AMAT’s Sym3 Magnum etch system and other technologies are driving revenue growth, with projections of more than 40% growth from DRAM customers in fiscal 2025. However, trade restrictions in China and competition from newer players like Scaria are challenges for AMAT’s growth.
KLAC is experiencing strong demand for its advanced process control and packaging solutions, with projections of significant growth in the semiconductor process control market. The company holds a significant market share and is expected to see growth in revenues and EPS in fiscal 2025.
Both AMAT and KLAC have seen stock price gains in 2025, with AMAT trading at a lower price-to-sales multiple compared to KLAC. While both companies are essential in the semiconductor equipment space, KLAC has a stronger market share in its specialized domain.
In conclusion, KLAC may hold an advantage over AMAT in terms of market share and growth prospects. While KLAC carries a Zacks Rank #2 (Buy), AMAT has a Zacks Rank #3 (Hold). Investors may consider the growth potential and market position of both companies when making investment decisions.
Read more at Nasdaq: AMAT vs. KLAC: Which Semiconductor Equipment Stock is the Better Buy?