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

Applied Materials, Inc. (NASDAQ:AMAT) has been given an average rating of “Moderate Buy” by the thirty-nine brokerages that are covering the firm, MarketBeat reports. Eight investment analysts have rated the stock with a hold recommendation, thirty have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $640.20.

AMAT has been the topic of several recent analyst reports. JPMorgan Chase & Co. increased their price objective on shares of Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday, August 14th. Erste Group Bank downgraded shares of Applied Materials from a “buy” rating to a “hold” rating in a report on Wednesday, August 5th. HC Wainwright set a $850.00 price target on shares of Applied Materials in a research report on Monday, June 29th. Stifel Nicolaus increased their price target on shares of Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, William Blair started coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating on the stock.

More Applied Materials News

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

• Positive Sentiment: Applied Materials announced a collaboration with Intel to accelerate development of next-generation transistors, interconnects and advanced packaging for AI chips. Work will be conducted at Applied’s EPIC Center in Silicon Valley and Intel’s Oregon R&D campus, potentially strengthening AMAT’s role in future semiconductor manufacturing. Applied Materials and Intel Collaborate to Accelerate Chipmaking Innovations for AI-Driven Computing
• Positive Sentiment: Recent partnerships with KIOXIA in advanced memory and BE Semiconductor Industries in packaging and interconnects reinforce the company’s exposure to AI-driven chip demand. The announcements helped support a broader bullish narrative around Applied Materials’ EPIC Center and semiconductor equipment opportunities. Applied Materials AI Chip Memory and Packaging Partnerships
• Positive Sentiment: Goldman Sachs identified Applied Materials as a tactical semiconductor stock ahead of earnings, citing a more constructive setup for the sector. Analysts also point to AI-driven wafer-fabrication-equipment demand, strong services growth and capacity expansion as potential earnings catalysts. 3 Chip Stocks Set for an Earnings Boost
• Neutral Sentiment: AMAT has dramatically outperformed the broader market over the past year, reflecting investor enthusiasm for AI-related equipment demand. Its latest reported quarter also exceeded revenue and earnings expectations, with revenue up 24.8% year over year.
• Neutral Sentiment: Options activity and heavy online investor searches indicate elevated attention and may contribute to short-term volatility, but neither necessarily signals a fundamental change in the company’s outlook. The chief accounting officer’s sale of 725 shares was made to cover tax withholding on vested equity awards, limiting its significance.
• Negative Sentiment: Compared with Nvidia, Applied Materials has posted more stable rather than consistently rising quarterly revenue over the analyzed periods. Nvidia also generates substantially higher free cash flow and margins, highlighting the competitive challenge and the risk that AMAT’s AI opportunity is already reflected in its share price. Applied Materials vs. Nvidia Revenue Trends
• Negative Sentiment: Valuation remains a concern: AMAT trades at a high earnings and sales multiple after its substantial rally. Investors may be taking profits or demanding stronger evidence that AI-driven demand can sustain the company’s growth.

Insider Buying and Selling

In related news, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction 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 transaction, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of Applied Materials

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Harborfront Financial Group LLC acquired a new stake in shares of Applied Materials in the second quarter worth $27,000. Orion Capital Management LLC acquired a new position in shares of Applied Materials during the 2nd quarter valued at $33,000. Highland Investment Advisors LLC acquired a new position in shares of Applied Materials during the 2nd quarter valued at $33,000. BOK Financial Private Wealth Inc. purchased a new stake in Applied Materials during the 2nd quarter worth $41,000. Finally, Financial Freedom LLC purchased a new stake in Applied Materials during the 1st quarter worth $28,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Price Performance

Shares of NASDAQ:AMAT opened at $530.27 on Friday. The company has a market cap of $420.82 billion, a P/E ratio of 45.71, a P/E/G ratio of 1.51 and a beta of 1.60. The business has a fifty day simple moving average of $487.06 and a 200-day simple moving average of $479.42. Applied Materials has a 52 week low of $203.40 and a 52 week high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping 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 firm had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the prior year, the business posted $2.48 earnings per share. The firm’s revenue for the quarter 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 research analysts forecast that Applied Materials will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

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

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.