Applied Materials (NASDAQ:AMAT) Shares Up 1.4% – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price rose 1.4% on Tuesday . The company traded as high as $525.98 and last traded at $499.21. Approximately 11,053,616 shares were traded during mid-day trading, an increase of 48% from the average daily volume of 7,458,796 shares. The stock had previously closed at $492.17.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials announced a quarterly cash dividend of $0.53 per share, reinforcing its shareholder-return strategy and signaling management confidence in cash generation. Applied Materials Announces Cash Dividend
• Positive Sentiment: Recent coverage continues to point to AI-related semiconductor equipment demand and upbeat analyst sentiment as key drivers for AMAT, with the stock benefiting from the broader rebound in chip equipment names. Applied Materials, Inc. (AMAT) Eyes Growing Southeast Asia Workforce by 25%
• Positive Sentiment: The semiconductor sector recovered after a sharp selloff, lifting Applied Materials along with other equipment makers as investors rotated back into the group. Applied Materials and KLA Corporation stocks trade up, what you need to know
• Neutral Sentiment: Reports that semiconductor short sellers are piling into the trade and that the sector may be entering a corrective phase could create near-term volatility for AMAT, but these headlines are broader industry read-throughs rather than company-specific developments. Semiconductor shorts pile on as winning trade reverses
• Negative Sentiment: Some commentary notes that the semiconductor index has hit an upside target and may be due for a pullback, which could weigh on AMAT if investors expect a broader chip-equipment correction. Semiconductor Index Outlook: Upside Target Reached, Correction Underway
• Negative Sentiment: AMAT has also been mentioned in valuation-focused pieces after a very strong one-year run, suggesting some investors may be questioning how much upside is left at current levels. Should You Buy, Sell or Hold AMAT Stock After a 167% Rise in a Year?

Wall Street Analysts Forecast Growth

AMAT has been the topic of several analyst reports. KGI Securities upgraded Applied Materials to an “outperform” rating and set a $425.00 price target on the stock in a research report on Friday, February 13th. B. Riley Financial upped their price objective on shares of Applied Materials from $530.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Deutsche Bank Aktiengesellschaft increased their price target on shares of Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a research report on Friday, May 15th. DZ Bank raised Applied Materials to a “hold” rating in a research note on Monday, February 16th. Finally, KeyCorp increased their price objective on Applied Materials from $450.00 to $550.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $470.13.

Applied Materials Stock Performance

The business has a fifty day simple moving average of $412.01 and a 200-day simple moving average of $344.99. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The firm has a market cap of $396.35 billion, a P/E ratio of 46.87, a P/E/G ratio of 1.27 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter in the prior year, the company earned $2.39 earnings per share. The firm’s quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, sell-side analysts predict that Applied Materials, Inc. will post 12.02 EPS for the current fiscal year.

Applied Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, May 21st. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is 19.91%.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 268 shares of Applied Materials stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $434.22, for a total value of $116,370.96. Following the completion of the sale, the chief accounting officer directly owned 4,280 shares in the company, valued at approximately $1,858,461.60. This trade represents a 5.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of Applied Materials stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares of the company’s stock, valued at $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 53,896 shares of company stock valued at $27,135,121 over the last ninety days. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in Applied Materials by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock worth $19,731,523,000 after buying an additional 330,197 shares in the last quarter. Capital Research Global Investors increased its holdings in Applied Materials by 119.8% in the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after buying an additional 17,829,377 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock worth $2,563,376,000 after buying an additional 3,583,751 shares in the last quarter. Morgan Stanley increased its holdings in Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares in the last quarter. Finally, Norges Bank bought a new stake in Applied Materials in the 4th quarter worth about $2,858,543,000. 80.56% of the stock is currently owned by institutional investors.

Applied Materials Company Profile

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.