Applied Materials, Inc. (NASDAQ:AMAT) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Applied Materials, Inc. (NASDAQ:AMAT) have received an average recommendation of “Moderate Buy” from the thirty-three ratings firms that are covering the company, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold recommendation, twenty-seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $658.4483.

AMAT has been the subject of a number of recent research reports. Argus set a $600.00 price target on shares of Applied Materials in a research report on Tuesday, August 18th. HSBC reaffirmed a “buy” rating and issued a $683.00 price objective on shares of Applied Materials in a report on Monday, July 27th. Erste Group Bank lowered shares of Applied Materials from a “buy” rating to a “hold” rating in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $605.00 price target on shares of Applied Materials in a research report on Friday, August 14th. Finally, Mizuho decreased their price objective on Applied Materials from $650.00 to $590.00 and set an “outperform” rating for the company in a report on Tuesday, August 25th.

Applied Materials Price Performance

Shares of AMAT opened at $456.49 on Monday. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company’s fifty day moving average price is $513.89 and its 200-day moving average price is $464.57. Applied Materials has a 1-year low of $167.18 and a 1-year high of $739.67. The firm has a market capitalization of $362.27 billion, a PE ratio of 39.35, a price-to-earnings-growth ratio of 1.27 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the previous year, the business earned $2.48 EPS. The company’s quarterly revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts predict that Applied Materials will post 12.76 EPS for the current year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. Applied Materials’s payout ratio is presently 18.28%.

Applied Materials News Summary

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: CEO Gary Dickerson said the AI boom remains durable, citing customer orders that extend years into the future. Commentary from industry peers reportedly supports continued demand for semiconductor manufacturing equipment, strengthening the growth outlook for AMAT. Applied Materials AI demand outlook
• Positive Sentiment: Applied Materials maintained its quarterly dividend at $0.53 per share, payable December 10 to shareholders of record November 19. The payment follows a 15% dividend increase announced in March and signals continued confidence in cash generation. Applied Materials dividend announcement
• Positive Sentiment: AMAT’s latest reported quarter exceeded expectations, with adjusted EPS of $3.50 versus a $3.40 consensus estimate and revenue of $9.12 billion versus $8.99 billion. Revenue increased 24.8% year over year, supporting the bullish AI and semiconductor-cycle narrative.
• Neutral Sentiment: Investor articles are comparing AMAT favorably with Intel because Applied Materials is profitable, has relatively low debt and supplies the equipment needed to build advanced chips. However, the stock’s roughly 39 price-to-earnings ratio leaves less room for execution disappointments. Applied Materials versus Intel comparison
• Neutral Sentiment: Analyst coverage remains broadly favorable, with a consensus “Moderate Buy” rating and an average target of $658.45. Nonetheless, the wide range between bullish and bearish scenarios highlights uncertainty surrounding AI demand, semiconductor cyclicality and valuation.
• Negative Sentiment: Director Judy Bruner sold 1,000 shares for approximately $465,000, reducing her holdings by 3.77%. She still retains a substantial position, so the transaction is a modest sentiment negative rather than a major change in insider conviction. SEC insider sale filing
• Negative Sentiment: Risk-focused commentary notes that AMAT tends to amplify market moves. Its beta of 1.60 and elevated valuation could make the stock vulnerable if AI spending expectations weaken or broader technology shares pull back. Applied Materials volatility analysis

Insider Buying and Selling at Applied Materials

In other news, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider directly owned 346,642 shares of the company’s stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 202,061 shares of company stock worth $128,478,941. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently modified their holdings of the company. JFS Wealth Advisors LLC boosted its position in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC grew its stake in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC raised its holdings in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after purchasing an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC raised its holdings in Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its position in Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after buying an additional 21 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Company Profile

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.