AMAT vs. TSEM: Applied Materials vs. Tower Semiconductor Stock Comparison

November 11, 2026

How do Applied Materials (AMAT) and Tower Semiconductor (TSEM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Materials (AMAT) and Tower Semiconductor (TSEM) both belong to the Semiconductors & Semiconductor Equipment industry, though AMAT is classified under Semiconductor Materials & Equipment while TSEM falls under Semiconductors.

Company profile comparison for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Profile Item	AMAT	TSEM
Name	Applied Materials Inc.	Tower Semiconductor Ltd.
Country/Region	United States	Israel
GICS Sector	Information Technology	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductor Materials & Equipment	Semiconductors
Market Capitalization	264.04 billion USD	15.59 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 17, 1980	October 26, 1994
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AMAT

TSEM

GSPC

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Materials (AMAT) and Tower Semiconductor (TSEM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Materials (AMAT) and Tower Semiconductor (TSEM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Total Return (1Y)	62.12%	78.71%
Total Return (3Y, Annualized)	38.42%	83.79%
Total Return (5Y, Annualized)	19.86%	32.56%

Risk Profile

Drawdown History

AMAT

TSEM

GSPC

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Materials (AMAT) and Tower Semiconductor (TSEM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Volatility (1Y, Annualized)	63.72%	84.90%
Beta (5Y)	1.68	0.99
Max Drawdown (5Y)	-55.80%	-58.66%
Avg. Volume (3M)	7.16M	2.22M

Risk-Adjusted Performance

Risk-Return Positioning

AMAT and TSEM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Sharpe Ratio (1Y)	0.91	0.88
Sortino Ratio (1Y)	1.35	1.32

Profitability

ROE (TTM)

Applied Materials (AMAT) at 41.07% sits in the top ROE quartile, while Tower Semiconductor (TSEM) at 11.86% is closer to the peer norm — stronger capital efficiency for AMAT.

AMAT

Semiconductors & Semiconductor Equipment industry group

41.07%

Max: 52.82%
AMAT: 41.07%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

TSEM

Semiconductors & Semiconductor Equipment industry group

11.86%

Max: 52.82%
Q3: 22.26%
TSEM: 11.86%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their ROE against the Semiconductors & Semiconductor Equipment industry group benchmark.

Net Margin (TTM)

Applied Materials (AMAT) at 30.05% retains a top-quartile share of revenue as profit, ahead of Tower Semiconductor (TSEM) at 19.36%, which keeps about the industry-typical share.

AMAT

Semiconductors & Semiconductor Equipment industry group

30.05%

Max: 63.80%
AMAT: 30.05%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

TSEM

Semiconductors & Semiconductor Equipment industry group

19.36%

Max: 63.80%
Q3: 28.36%
TSEM: 19.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their net margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Operating Margin (TTM)

Applied Materials (AMAT) at 33.74% operates in the top operating margin quartile, ahead of Tower Semiconductor (TSEM) at 24.16%, which runs around its industry’s norm.

AMAT

Semiconductors & Semiconductor Equipment industry group

33.74%

Max: 58.66%
AMAT: 33.74%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

TSEM

Semiconductors & Semiconductor Equipment industry group

24.16%

Max: 58.66%
Q3: 30.23%
TSEM: 24.16%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their operating margin against the Semiconductors & Semiconductor Equipment industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
ROE (TTM)	41.07%	11.86%
ROA (TTM)	15.48%	6.07%
Net Margin (TTM)	30.05%	19.36%
Operating Margin (TTM)	33.74%	24.16%
Gross Margin (TTM)	49.40%	29.62%

Growth

Revenue Growth

Both Applied Materials (AMAT) at 4.39% and Tower Semiconductor (TSEM) at 9.05% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Applied Materials (AMAT) at 0.58% and Tower Semiconductor (TSEM) at 4.86% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Revenue Growth (YoY)	4.39%	9.05%
Revenue Growth (3Y CAGR)	3.23%	-2.27%
EPS Growth (YoY)	0.58%	4.86%
EPS Growth (3Y CAGR)	5.19%	-6.72%

Financial Strength

Current Ratio (MRQ)

Both Applied Materials (AMAT) at 2.42 and Tower Semiconductor (TSEM) at 3.72 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

2.42

Max: 10.33
Q3: 5.62
Median: 3.33
AMAT: 2.42
Q1: 2.35
Min: 1.03

TSEM

Semiconductors & Semiconductor Equipment industry group

3.72

Max: 10.33
Q3: 5.62
TSEM: 3.72
Median: 3.33
Q1: 2.35
Min: 1.03

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their current ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Debt / Equity (MRQ)

Both Applied Materials (AMAT) at 0.29 and Tower Semiconductor (TSEM) at 0.05 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.29

Max: 1.46
Q3: 0.65
AMAT: 0.29
Median: 0.27
Q1: 0.04
Min: 0.00

TSEM

Semiconductors & Semiconductor Equipment industry group

0.05

Max: 1.46
Q3: 0.65
Median: 0.27
TSEM: 0.05
Q1: 0.04
Min: 0.00

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their debt-to-equity ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Current Ratio (MRQ)	2.42	3.72
Debt / Equity (MRQ)	0.29	0.05
Net Debt / EBITDA	-0.19	-1.92

Dividends

Dividend Yield (TTM)

Tower Semiconductor (TSEM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Applied Materials (AMAT) reports a yield of 0.62%, ranking against industry peers normally.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.62%

Max: 1.37%
Q3: 0.65%
AMAT: 0.62%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TSEM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 1.37%
Q3: 0.65%
TSEM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their dividend yield against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Payout Ratio (TTM)

Tower Semiconductor (TSEM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Applied Materials (AMAT) reports a payout of 16.48%, ranking against industry peers normally.

AMAT

Semiconductors & Semiconductor Equipment industry group

16.48%

Max: 49.64%
Q3: 21.71%
AMAT: 16.48%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

TSEM

Semiconductors & Semiconductor Equipment industry group

0.00%

Max: 49.64%
Q3: 21.71%
TSEM: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their payout ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
Dividend Yield (TTM)	0.62%	0.00%
Dividend Payout Ratio (TTM)	16.48%	0.00%

Valuation

P/E Ratio (TTM)

Both Applied Materials (AMAT) at 28.71 and Tower Semiconductor (TSEM) at 44.16 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

28.71

Max: 110.34
Q3: 66.81
Median: 37.02
AMAT: 28.71
Q1: 23.96
Min: 8.12

TSEM

Semiconductors & Semiconductor Equipment industry group

44.16

Max: 110.34
Q3: 66.81
TSEM: 44.16
Median: 37.02
Q1: 23.96
Min: 8.12

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their P/E ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Materials (AMAT) at 8.56 and Tower Semiconductor (TSEM) at 8.47 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AMAT

Semiconductors & Semiconductor Equipment industry group

8.56

Max: 21.42
Q3: 12.27
AMAT: 8.56
Median: 5.76
Q1: 2.73
Min: 0.00

TSEM

Semiconductors & Semiconductor Equipment industry group

8.47

Max: 21.42
Q3: 12.27
TSEM: 8.47
Median: 5.76
Q1: 2.73
Min: 0.00

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their P/S ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

P/B Ratio (MRQ)

Tower Semiconductor (TSEM) at 4.85 is valued about in line with its industry on P/B ratio, while Applied Materials (AMAT) at 10.30 carries an above-peer premium to book — AMAT is pricier on assets.

AMAT

Semiconductors & Semiconductor Equipment industry group

10.30

Max: 14.06
AMAT: 10.30
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

TSEM

Semiconductors & Semiconductor Equipment industry group

4.85

Max: 14.06
Q3: 7.44
TSEM: 4.85
Median: 4.29
Q1: 2.30
Min: 0.20

Applied Materials (AMAT) vs. Tower Semiconductor (TSEM): A comparison of their P/B ratio against the Semiconductors & Semiconductor Equipment industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Materials (AMAT) and Tower Semiconductor (TSEM)
Metric	AMAT	TSEM
P/E Ratio (TTM)	28.71	44.16
P/S Ratio (TTM)	8.56	8.47
P/B Ratio (MRQ)	10.30	4.85
Free Cash Flow Yield (TTM)	1.16%	1.59%