Applied Materials (NASDAQ:AMAT) Stock Falls 6.7% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 6.7% during mid-day trading on Tuesday. The stock traded as low as $452.81 and last traded at $464.24. Approximately 10,668,533 shares traded hands during mid-day trading, an increase of 36% from the average session volume of 7,863,136 shares. The stock had previously closed at $497.53.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials unveiled its $5 billion EPIC Center in Sunnyvale, California, described as the world’s largest semiconductor equipment and process-technology research facility. The center is intended to accelerate chip development and reduce the time required to bring new semiconductor technologies to market, with Intel, Micron, SK Hynix and Samsung among its partners. Applied Materials opens $5B semiconductor innovation center
• Positive Sentiment: Several analysts remain constructive. RBC reaffirmed its “outperform” rating with a $600 price target, while other coverage points to potential upside based on positive earnings-estimate revisions and strong demand for semiconductor manufacturing equipment. Wall Street Analysts Think Applied Materials Could Surge
• Positive Sentiment: Applied Materials’ broad wafer-fabrication equipment portfolio positions it to benefit as chipmakers expand capacity for artificial intelligence and other advanced applications. Recent earnings also showed 24.8% year-over-year revenue growth and an earnings beat, supporting the longer-term investment case. ASML vs. Applied Materials
• Neutral Sentiment: Analyst opinion is mixed: some firms are bullish, while comparison articles frame Applied Materials as a quality chip-equipment leader but note that valuation and competitive positioning must be weighed against alternatives such as ASML and Broadcom.
• Negative Sentiment: The immediate pressure appears tied to Applied Materials’ Investor Day. Commentary suggested that its 2030 financial targets were less ambitious or less specific than bullish investors expected, raising concerns that future growth and margin expansion may not justify the stock’s premium valuation. Why Applied Materials Sank Today
• Negative Sentiment: AMAT has also been affected by a broad selloff in semiconductor stocks and a six-session losing streak, amplifying the reaction to the Investor Day outlook. The stock is trading well below its 50-day and 200-day moving averages, adding technical pressure.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on AMAT shares. JPMorgan Chase & Co. boosted their price target on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday, August 14th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $605.00 price target (down from $680.00) on shares of Applied Materials in a report on Friday, August 14th. TD Cowen reiterated a “buy” rating and issued a $700.00 target price on shares of Applied Materials in a research note on Friday, August 14th. Susquehanna boosted their price target on Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research note on Tuesday, June 30th. Finally, Stifel Nicolaus boosted their price objective on Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $637.14.

Applied Materials Stock Performance

The firm has a market capitalization of $341.26 billion, a price-to-earnings ratio of 37.07, a P/E/G ratio of 1.29 and a beta of 1.60. The company has a 50-day moving average price of $485.07 and a 200-day moving average price of $484.96. 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 announced its 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 firm 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 firm’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 12.79 earnings per share for the current year.

Applied Materials Dividend Announcement

The firm 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. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio is presently 18.28%.

Insider Activity

In related news, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were 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. The trade was a 3.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer owned 128,613 shares in the company, valued at $61,637,780.25. The trade was a 5.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 9,225 shares of company stock worth $4,454,181. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of the business. Ausdal Financial Partners Inc. bought a new stake in Applied Materials during the second quarter worth about $4,005,000. Caldwell Investment Management Ltd. bought a new stake in Applied Materials during the second quarter worth $1,589,000. CX Institutional increased its stake in shares of Applied Materials by 333.3% during the 3rd quarter. CX Institutional now owns 25,853 shares of the manufacturing equipment provider’s stock worth $12,631,000 after purchasing an additional 19,886 shares during the last quarter. Evolve Private Wealth LLC lifted its stake in Applied Materials by 59.0% in the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after purchasing an additional 1,067 shares during the last quarter. Finally, Principal Financial Group Inc. grew its holdings in Applied Materials by 3.0% during the second quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock worth $729,211,000 after purchasing an additional 28,982 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

About Applied Materials

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.