Applied Materials (NASDAQ:AMAT) Shares Down 2.1% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares traded down 2.1% on Thursday. The company traded as low as $502.65 and last traded at $509.57. 6,317,167 shares were traded during trading, a decline of 20% from the average daily volume of 7,888,742 shares. The stock had previously closed at $520.65.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials’ AGS business is gaining momentum, supported by AI-enabled services, recurring revenue and continued demand for semiconductor-fabrication equipment. The outlook suggests potential growth through 2030. Can Applied Materials Sustain Momentum in Its AGS Business?
• Positive Sentiment: Industry commentary indicates that TSMC could spend as much as $64 billion on capital expenditures and may still be underbuilding capacity. More fab investment would likely support demand for Applied Materials’ chipmaking systems. TSMC Plans Up to $64 Billion in Capex
• Positive Sentiment: Recent comparisons with Qualcomm, Marvell Technology and Nvidia highlight an acceleration in Applied Materials’ revenue during the first half of 2026, improving its growth profile relative to several AI-related companies. Analysts also continue to cite dependable earnings and AI-driven chip complexity as potential upside drivers. Applied Materials vs. Qualcomm Revenue Trends
• Neutral Sentiment: Jim Cramer reportedly sees additional value in Applied Materials beyond its earnings multiple, although the stock’s elevated valuation makes sustained earnings growth important. The shares trade at a premium after a substantial 12-month advance. Jim Cramer Sees More to Applied Materials Than Its Earnings Multiple
• Negative Sentiment: Reports of insider selling have added near-term pressure and may raise concerns about whether company insiders view the recent rally as an opportunity to take profits. Applied Materials Stock Falls After Insider Selling

Analyst Upgrades and Downgrades

A number of analysts recently commented on AMAT shares. Mizuho decreased their price objective on Applied Materials from $650.00 to $590.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Argus set a $600.00 target price on shares of Applied Materials and gave the company a “buy” rating in a research note on Tuesday, August 18th. Berenberg Bank upped their target price on shares of Applied Materials from $575.00 to $675.00 and gave the company a “buy” rating in a report on Monday, August 17th. Sanford C. Bernstein raised their price target on shares of Applied Materials from $675.00 to $700.00 and gave the stock an “outperform” rating in a research note on Friday, August 14th. Finally, UBS Group lifted their price target on shares of Applied Materials from $675.00 to $695.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $640.20.

Applied Materials Stock Down 2.1%

The stock has a market cap of $404.39 billion, a price-to-earnings ratio of 43.93, a price-to-earnings-growth ratio of 1.48 and a beta of 1.60. The firm’s 50-day moving average is $488.74 and its 200 day moving average is $480.57. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same period in the previous year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts anticipate that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

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

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $544.56, for a total value of $394,806.00. Following the transaction, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction dated 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 owned 25,544 shares of the company’s stock, valued at $11,877,960. The trade was a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 9,225 shares of company stock worth $4,454,181 in the last three months. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently made changes to their positions in the business. JFS Wealth Advisors LLC lifted its position in Applied Materials by 4.3% during the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after purchasing an additional 17 shares during the period. Innovative Asset Advisors Group LLC grew its position in Applied Materials by 2.1% in the 2nd 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 grew its position in Applied Materials by 2.1% in the 2nd 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 during the period. N.E.W. Advisory Services LLC raised its stake in Applied Materials by 5.9% during the 2nd quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock valued at $273,000 after buying an additional 21 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its stake in Applied Materials by 13.0% during the 2nd 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 last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.