AMAT vs. TXN: Applied Materials vs. Texas Instruments Stock Comparison

November 11, 2026

How do Applied Materials (AMAT) and Texas Instruments (TXN) 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 Texas Instruments (TXN) both belong to the Semiconductors & Semiconductor Equipment industry, though AMAT is classified under Semiconductor Materials & Equipment while TXN falls under Semiconductors.

Company profile comparison for Applied Materials (AMAT) and Texas Instruments (TXN)
Profile Item	AMAT	TXN
Name	Applied Materials Inc.	Texas Instruments Inc.
Country/Region	United States	United States
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	253.58 billion USD
Currency	USD	USD
Exchange	Nasdaq	Nasdaq
Listing Date	March 17, 1980	June 1, 1972
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AMAT

TXN

GSPC

Applied Materials (AMAT) vs. Texas Instruments (TXN), 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 Texas Instruments (TXN). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
Total Return (1Y)	62.12%	86.19%
Total Return (3Y, Annualized)	38.42%	30.37%
Total Return (5Y, Annualized)	19.86%	12.03%

Risk Profile

Drawdown History

AMAT

TXN

GSPC

Applied Materials (AMAT) vs. Texas Instruments (TXN), 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 Texas Instruments (TXN). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
Volatility (1Y, Annualized)	63.72%	44.27%
Beta (5Y)	1.68	1.40
Max Drawdown (5Y)	-55.80%	-33.41%
Avg. Volume (3M)	7.16M	6.57M

Risk-Adjusted Performance

Risk-Return Positioning

AMAT and TXN 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 Texas Instruments (TXN)
Metric	AMAT	TXN
Sharpe Ratio (1Y)	0.91	1.85
Sortino Ratio (1Y)	1.35	3.15

Profitability

ROE (TTM)

Both Applied Materials (AMAT) at 41.07% and Texas Instruments (TXN) at 39.72% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

39.72%

Max: 52.82%
TXN: 39.72%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

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

Net Margin (TTM)

For every dollar of sales, both Applied Materials (AMAT) at 30.05% and Texas Instruments (TXN) at 34.25% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

34.25%

Max: 63.80%
TXN: 34.25%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

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

Operating Margin (TTM)

Both Applied Materials (AMAT) at 33.74% and Texas Instruments (TXN) at 47.55% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

47.55%

Max: 58.66%
TXN: 47.55%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

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

Profitability Metrics

Profitability metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
ROE (TTM)	41.07%	39.72%
ROA (TTM)	15.48%	14.85%
Net Margin (TTM)	30.05%	34.25%
Operating Margin (TTM)	33.74%	47.55%
Gross Margin (TTM)	49.40%	60.24%

Growth

Revenue Growth

Both Applied Materials (AMAT) at 4.39% and Texas Instruments (TXN) at 13.05% 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. Texas Instruments (TXN): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Applied Materials (AMAT) at 0.58% and Texas Instruments (TXN) at 4.81% 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. Texas Instruments (TXN): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
Revenue Growth (YoY)	4.39%	13.05%
Revenue Growth (3Y CAGR)	3.23%	-4.07%
EPS Growth (YoY)	0.58%	4.81%
EPS Growth (3Y CAGR)	5.19%	-16.64%

Financial Strength

Current Ratio (MRQ)

Both Applied Materials (AMAT) at 2.42 and Texas Instruments (TXN) at 5.60 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

TXN

Semiconductors & Semiconductor Equipment industry group

5.60

Max: 10.33
Q3: 5.62
TXN: 5.60
Median: 3.33
Q1: 2.35
Min: 1.03

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

Debt / Equity (MRQ)

Applied Materials (AMAT) at 0.29 carries an industry-typical debt-to-equity mix, while Texas Instruments (TXN) at 0.71 uses more debt funding than most peers.

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

TXN

Semiconductors & Semiconductor Equipment industry group

0.71

Max: 1.46
TXN: 0.71
Q3: 0.65
Median: 0.27
Q1: 0.04
Min: 0.00

Applied Materials (AMAT) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN)
Metric	AMAT	TXN
Current Ratio (MRQ)	2.42	5.60
Debt / Equity (MRQ)	0.29	0.71
Net Debt / EBITDA	-0.19	0.51

Dividends

Dividend Yield (TTM)

Applied Materials (AMAT) at 0.62% pays an industry-typical yield; Texas Instruments (TXN) at 2.04% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

2.04%

TXN: 2.04%
Max: 1.37%
Q3: 0.65%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Applied Materials (AMAT) at 16.48% keeps its payout in the industry’s typical band, while Texas Instruments (TXN) at 73.67% pays out more than any of its peers — the most stretched cover in its group.

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%

TXN

Semiconductors & Semiconductor Equipment industry group

73.67%

TXN: 73.67%
Max: 49.64%
Q3: 21.71%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
Dividend Yield (TTM)	0.62%	2.04%
Dividend Payout Ratio (TTM)	16.48%	73.67%

Valuation

P/E Ratio (TTM)

Both Applied Materials (AMAT) at 28.71 and Texas Instruments (TXN) at 35.97 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

TXN

Semiconductors & Semiconductor Equipment industry group

35.97

Max: 110.34
Q3: 66.81
Median: 37.02
TXN: 35.97
Q1: 23.96
Min: 8.12

Applied Materials (AMAT) vs. Texas Instruments (TXN): 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 Texas Instruments (TXN) at 12.21 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

TXN

Semiconductors & Semiconductor Equipment industry group

12.21

Max: 21.42
Q3: 12.27
TXN: 12.21
Median: 5.76
Q1: 2.73
Min: 0.00

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

P/B Ratio (MRQ)

Both Applied Materials (AMAT) at 10.30 and Texas Instruments (TXN) at 13.21 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.

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

TXN

Semiconductors & Semiconductor Equipment industry group

13.21

Max: 14.06
TXN: 13.21
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

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

Valuation Metrics

Valuation metrics for Applied Materials (AMAT) and Texas Instruments (TXN)
Metric	AMAT	TXN
P/E Ratio (TTM)	28.71	35.97
P/S Ratio (TTM)	8.56	12.21
P/B Ratio (MRQ)	10.30	13.21
Free Cash Flow Yield (TTM)	1.16%	1.88%