What is CVD and ALD in semiconductor manufacturing?

Chemical Vapor Deposition (CVD) deposits thin films on a wafer surface by flowing reactive gases over the heated wafer — the gases react chemically on the surface to deposit a solid film of precise composition. It's used to deposit dielectrics, metals, and semiconductor materials. Atomic Layer Deposition (ALD) is an extreme-precision variant of CVD that deposits one atomic layer at a time using sequential self-limiting reactions — essential for depositing ultra-thin, pinhole-free films at advanced nodes where 3-5 atomic layers of material matter. Both Applied Materials and Lam Research are leaders in CVD and ALD equipment for different process steps and materials.

How do export restrictions on China affect semiconductor equipment companies?

The U.S. Commerce Department's export controls restrict sale of advanced semiconductor equipment to Chinese customers for chips below certain node thresholds (e.g., 14nm and below for logic, equivalent capability for memory). Applied Materials, Lam Research, and KLA have all historically had China revenues representing 20-30% of total revenue. Export restrictions have reduced what equipment can be sold to Chinese chip manufacturers (SMIC, YMTC, CXMT), though mature node equipment sales may continue. The restrictions create both direct revenue headwinds and strategic uncertainty — Chinese companies are accelerating domestic equipment development (NAURA, AMEC) to reduce dependency.

What is the semiconductor equipment 'installed base' and why is it valuable?

The installed base refers to all the equipment previously sold to semiconductor manufacturers that is currently in operation in fabs around the world. Equipment companies generate ongoing 'aftermarket' revenue from this installed base through: service contracts (maintenance, repair, replacement parts), consumables (components that wear out during normal operation), and upgrades (hardware and software modifications to improve performance or capability). This installed base revenue is more recurring and less cyclical than new equipment orders — it continues even when chip companies reduce new capital equipment spending during downturns. Both Applied Materials and Lam Research have grown their service revenue significantly as their installed bases have expanded.

brimindinvest.com / compare / amat-vs-lamLIVE

AMAT

Applied Materials, Inc. · Technology - Semiconductor Equipment

$617.11

+51.66% this month

VERSUS

⟷

COMPARE

LRCX

Lam Research Corporation · Technology - Semiconductor Equipment

$389.04

+42.31% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

AMAT

2

LRCX

3

LRCX LEADS 3/5

Comparison scoreboard

LRCX LEADS 3/5

AI Score

AMAT 72.8

LRCX ✓74.8

1Y Return

AMAT +254.48%

LRCX ✓+319.86%

Fwd P/E

AMAT ✓34.89

LRCX 46.04

Target Up.

AMAT ✓-8.81%

LRCX -11.84%

Op. Margin

AMAT 31.90%

LRCX ✓35.04%

Metrics last refreshed: 6/20/2026

Quick take

AMAT vs LRCX Stock Comparison: AI Score, Valuation, Performance and Upside

AMAT (Applied Materials) and LRCX (Lam Research) are the two largest U.S. semiconductor equipment companies — Applied Materials is more diversified across process steps (CVD, PVD, ALD, etch, implant, inspection), while Lam Research is more concentrated in etch and deposition with particular leadership in 3D NAND memory etch. Both face China export restriction headwinds and semiconductor capex cycle volatility.

AMAT vs LRCX is semiconductor equipment breadth (Applied Materials' multi-process-step coverage from materials engineering through inspection) versus etch and deposition depth (Lam Research's leadership in high-aspect-ratio memory etch and thin film deposition with higher memory customer concentration) — both are essential to advanced chip manufacturing but with different risk profiles.

Live analysis · updated 6/20/2026

LRCX holds the edge across 3 of 5 key metrics in this comparison. LRCX has delivered stronger 1-year price return (+319.86% vs +254.48%), though AMAT trades at the lower forward P/E (34.89x vs 46.04x). LRCX leads on both revenue growth (23.80%) and operating margin (35.04%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies meaningfully more upside for AMAT (-8.81%) than for LRCX (-11.84%).

Normalized 1Y performance

AMAT

LRCX

Recent returns

AMAT

LRCX

Analyst price targets & sentiment

AMAT · 32 analysts

STRONG BUYHOLDSTRONG SELL

Buy (1.7/5.0)

Price target range

analyst low$152.00
analyst mean$517.28
current price$617.11

-8.8% upside to analyst mean

LRCX · 30 analysts

STRONG BUYHOLDSTRONG SELL

Buy (1.7/5.0)

Price target range

analyst low$70.00
analyst mean$323.38
current price$389.04

-11.8% upside to analyst mean

Who should consider this stock?

AMAT may suit investors who:

→Want the most diversified semiconductor equipment company exposure — Applied Materials participates in the most process steps of any equipment company, reducing dependence on any single technology or customer segment
→Value Applied Materials' materials engineering leadership as a growing advantage as advanced chips require new exotic materials at each node generation
→Prefer Applied Materials' more balanced logic/memory customer mix versus Lam Research's heavier memory concentration for lower cyclical sensitivity

LRCX may suit investors who:

→Want concentrated exposure to etch market leadership and 3D NAND memory equipment — Lam Research's dominant high-aspect-ratio etch position grows in content per wafer with each NAND layer generation increase
→Value Lam's deep technical integration with the world's largest memory manufacturers as a high-switching-cost competitive moat within the equipment supply chain
→Accept higher memory customer concentration for exposure to Lam's 3D NAND structural tailwind as memory manufacturers continue to scale layer counts

Performance & AI score

Metric	AMAT	LRCX
AI score	72.8	74.8
AI rank	#31	#22
Latest close	$617.11	$389.04
1M return	+51.66%	+42.31%
6M return	+148.56%	+151.03%
1Y return	+254.48%	+319.86%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	AMAT	LRCX
1Y ago	$35.7K (+257.0%) started 2025-06-18	$42.18K (+321.8%) started 2025-06-18
5Y ago	$49.47K (+394.7%) started 2021-06-21	$64.23K (+542.3%) started 2021-06-21
10Y ago	$319.73K (+3097.3%) started 2016-06-20	$517.51K (+5075.1%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	AMAT	LRCX
Market cap	$450.37B	$458.72B
Trailing P/E	53.46	69.47
Forward P/E	34.89	46.04
Price/Sales	4.76	6.45
EV/Revenue	15.48	21.11
Analyst target	$517.28	$323.38
Target upside	-8.81%	-11.84%

Growth, profitability & risk

Metric	AMAT	LRCX
Revenue growth	11.40%	23.80%
Earnings growth	33.50%	40.80%
EPS growth	+33.50%	+40.80%
FCF margin	+10.48%	+20.07%
Operating margin	31.90%	35.04%
Profit margin	29.31%	30.94%
ROIC proxy	39.69%	66.76%
Return on equity	39.69%	66.76%
Dividend yield	0.37%	0.28%
Beta	1.67	1.87
Debt/equity	30.40	35.28
Current ratio	2.51	2.54
Quick ratio	1.62	1.70

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

AMAT max drawdown21.60%

LRCX max drawdown20.10%

AMAT max wkly drop15.30%

LRCX max wkly drop14.78%

5Y risk snapshot

AMAT max drawdown55.14%

LRCX max drawdown56.85%

AMAT max wkly drop16.59%

LRCX max wkly drop18.99%

10Y risk snapshot

AMAT max drawdown55.14%

LRCX max drawdown56.85%

AMAT max wkly drop25.36%

LRCX max wkly drop29.82%

Performance metrics by period

Period	Metric	AMAT	LRCX
1Y	Growth	+257.04%	+321.77%
	CAGR	+257.69%	+322.64%
	Sharpe ratio	2.75	2.90
	Max drawdown	21.60%	20.10%
	Max daily drop	14.07%	9.85%
	Max wkly drop	15.30%	14.78%
5Y	Growth	+378.89%	+535.63%
	CAGR	+36.85%	+44.84%
	Sharpe ratio	0.83	0.93
	Max drawdown	55.14%	56.85%
	Max daily drop	14.07%	11.60%
	Max wkly drop	16.59%	18.99%
10Y	Growth	+2783.05%	+4785.76%
	CAGR	+39.98%	+47.57%
	Sharpe ratio	0.90	0.99
	Max drawdown	55.14%	56.85%
	Max daily drop	20.36%	18.43%
	Max wkly drop	25.36%	29.82%

Business comparison

Category	AMAT	LRCX
Company	Applied Materials, Inc.	Lam Research Corporation
Sector	Technology	Technology
Industry	Semiconductor Equipment & Materials	Semiconductor Equipment & Materials
Core business	Applied Materials is the world's largest semiconductor equipment company by revenue — providing chemical vapor deposition (CVD), physical vapor deposition (PVD), atomic layer deposition (ALD), etch, ion implant, inspection, and process control equipment used across the full wafer fabrication flow. Applied Materials serves logic, memory (DRAM, NAND), and display manufacturing.	Lam Research is a semiconductor equipment leader specializing in etch and deposition equipment — particularly plasma etch (selectively removing material in precise patterns), CVD/ALD thin film deposition, and cleaning equipment. Lam is the leader in etch for logic and has dominant positions in high-aspect-ratio memory etch for NAND flash, which requires etching very deep, narrow holes.
Investor focus	Investors track Applied Materials' equipment orders (bookings), revenue from logic versus memory customers, wafer fabrication equipment (WFE) market share, service revenue from its large installed base, and its materials engineering focus as chips require new materials at each advanced node.	Investors track Lam Research's equipment orders, memory versus logic customer mix (Lam has historically high memory exposure), etch and deposition market share, China exposure under export restrictions, and service/spares revenue from its installed base.

AMAT strengths

→Largest and most diversified semiconductor equipment portfolio — Applied Materials participates in more process steps (CVD, PVD, ALD, etch, ion implant, CMP, inspection) than any competitor, reducing cyclical risk from any single technology
→Materials engineering leadership — as chip features shrink, new materials (high-k dielectrics, metal gates, cobalt, ruthenium) become critical, and Applied Materials' expertise in depositing and engineering these materials is a strategic advantage
→Large installed base generates significant service, parts, and upgrade revenue that smooths the capital equipment order cycle

LRCX strengths

→Etch market leadership — Lam Research is the #1 or #2 player in most etch categories and dominates high-aspect-ratio etch for 3D NAND, a technology requiring billions of dollars of specialized equipment per new NAND fab
→3D NAND structural advantage — as NAND layers increase from 96 to 200+ layers, each generation requires more Lam etch steps per wafer, growing Lam's content per wafer independently of industry unit growth
→Strong memory customer relationships with Samsung, SK Hynix, Micron, and Kioxia — Lam's deep technical integration with memory manufacturers creates high switching costs for its equipment

Risks to watch — AMAT

→Export restrictions on China — Applied Materials has substantial China revenue; U.S. export control regulations on advanced semiconductor equipment to China represent a significant revenue headwind
→Memory market cyclicality — NAND and DRAM capital expenditure is highly cyclical; Applied Materials' memory customer exposure creates revenue volatility when memory chipmakers cut spending
→Competition from Tokyo Electron (TEL), Lam Research, and ASM International in specific process steps where Applied Materials' market position is less dominant

Risks to watch — LRCX

→Higher memory concentration than Applied Materials — Lam's revenue is more tied to memory capital expenditure cycles, creating greater cyclical swings during NAND/DRAM inventory corrections
→Export restriction risk to China is significant — Lam has material China revenue that is constrained by U.S. export controls on advanced etch equipment
→Customer concentration in a small number of large memory manufacturers (Samsung, SK Hynix, Micron, Kioxia) — spending decisions by these few companies have outsized impact on Lam's order rates

Frequently asked questions

Plasma etch uses ionized gas (plasma) to selectively remove material from a wafer surface in precise patterns — essentially cutting microscopic trenches, holes, and features defined by the photolithography mask. The plasma bombards the surface with reactive ions that chemically and physically remove material. Lam Research pioneered dry plasma etch technology and has invested decades in optimizing etch selectivity (removing target materials without damaging nearby materials), uniformity, and aspect ratio (the ratio of depth to width of etched features). For 3D NAND, where manufacturers etch holes 10+ micrometers deep and only 100nm wide (>100:1 aspect ratios), Lam's expertise is extraordinarily difficult to replicate.

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