Applied Materials (NASDAQ:AMAT) Stock Price Up 3.5% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded up 3.5% during mid-day trading on Thursday. The company traded as high as $533.88 and last traded at $529.30. Approximately 6,046,453 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 7,955,545 shares. The stock had previously closed at $511.38.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Expanded AI packaging partnership: BE Semiconductor is joining Applied Materials’ EPIC Center as an Innovation Partner. The collaboration will target 3D integrated circuits, logic and memory integration, photonics, hybrid bonding, thermo-compression bonding, and die-on-wafer, die-on-die, and die-on-panel architectures. These technologies could benefit from rising demand for AI infrastructure and advanced chip packaging. Applied Materials and Besi expand strategic partnership
• Positive Sentiment: AI and memory demand could extend growth: An investor letter highlighted continued expansion in AI computing and semiconductor memory shortages as factors that may support Applied Materials’ equipment demand. The company’s broad exposure to chip fabrication and packaging gives it multiple ways to participate in AI-related capital spending. AI compute expansion and memory shortages
• Positive Sentiment: Analyst target remains above the recent trading level: Analysts cited in a market report have an average price target of $629.38, suggesting potential upside if Applied Materials meets expectations for continued earnings growth. Applied Materials average target price
• Neutral Sentiment: Valuation and comparisons: Recent commentary describes Applied Materials as offering broad AI-driven growth and a lower valuation than some semiconductor-equipment alternatives, although its elevated earnings multiple means further gains likely depend on sustained execution and strong industry spending.
• Negative Sentiment: Execution risk remains: Applied Materials’ record equipment sales could reflect unusually strong conditions rather than a permanent new baseline. Investors should watch whether AI-related demand, memory spending, and advanced-packaging adoption translate into durable orders and margins. What investors may be overlooking

Wall Street Analyst Weigh In

AMAT has been the subject of several analyst reports. Erste Group Bank lowered Applied Materials from a “buy” rating to a “hold” rating in a research note on Wednesday, August 5th. Seaport Research Partners reissued a “buy” rating and set a $575.00 target price (up from $500.00) on shares of Applied Materials in a research report on Friday, August 14th. JPMorgan Chase & Co. raised their price target on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a research report on Friday, August 14th. Berenberg Bank lifted their price objective on shares of Applied Materials from $575.00 to $675.00 and gave the stock a “buy” rating in a research note on Monday, August 17th. Finally, Argus set a $600.00 price objective on shares of Applied Materials and gave the company a “buy” rating in a research report on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $640.20.

Applied Materials Trading Up 2.0%

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 business’s 50 day moving average price is $485.47 and its 200-day moving average price is $475.90. The firm has a market capitalization of $428.58 billion, a price-to-earnings ratio of 46.56, a price-to-earnings-growth ratio of 1.47 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm had revenue of $9.12 billion during the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter last year, the firm earned $2.48 earnings per share. The firm’s 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. Equities analysts forecast that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is 18.28%.

Insider Transactions at Applied Materials

In other news, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the completion of the sale, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the sale, the director directly owned 25,544 shares in the company, valued at $11,877,960. This trade represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds and other institutional investors have recently bought and sold shares of the company. Ausdal Financial Partners Inc. bought a new stake in shares of Applied Materials in the 2nd quarter worth approximately $4,005,000. Caldwell Investment Management Ltd. bought a new position in Applied Materials during the 2nd quarter worth $1,589,000. CX Institutional increased its position in Applied Materials by 333.3% in the third quarter. CX Institutional now owns 25,853 shares of the manufacturing equipment provider’s stock worth $12,631,000 after buying an additional 19,886 shares during the period. Evolve Private Wealth LLC increased its position in Applied Materials by 59.0% in the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock worth $983,000 after buying an additional 1,067 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in Applied Materials by 3.0% in the second quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after buying an additional 28,982 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Company Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.