Applied Materials (NASDAQ:AMAT) Stock Jumps 11.4% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded up 11.4% during trading on Monday. The company traded as high as $375.53 and last traded at $370.55. 10,937,969 shares changed hands during mid-day trading, an increase of 38% from the average session volume of 7,934,396 shares. The stock had previously closed at $332.71.

Key Applied Materials News

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

• Positive Sentiment: Chip-equipment stocks rallied broadly, with Applied Materials among the leaders. The rebound comes ahead of earnings and follows a sharp sell-off in the shares last week, suggesting improved sentiment toward the sector. Applied Materials Jumps Ahead of Earnings
• Positive Sentiment: Recent coverage points to AI-driven chip-equipment demand, growth in advanced packaging and increased memory investment as potential supports for AMAT’s business and upcoming results. AMAT to Post Q4 Earnings
• Neutral Sentiment: B. Riley lowered its price target from $700 to $475 but maintained a Buy rating; the revised target still implies potential upside, though the cut signals a more cautious valuation view. B. Riley analyst recommendations
• Negative Sentiment: Investors face a key test in the coming earnings report: supply concerns and expectations for the company’s 2027 outlook could limit the rally if results or guidance disappoint. Applied Materials Heads into Q4 Earnings Amid Supply Worries
• Negative Sentiment: Another valuation analysis argues that the stock may be above fair value after substantial longer-term gains, leaving less room for error if future cash flows or growth fall short of investor expectations. Applied Materials Stock Looks Above Fair Value

Analyst Ratings Changes

Several brokerages have weighed in on AMAT. TD Cowen reissued a “buy” rating and set a $700.00 price objective on shares of Applied Materials in a report on Friday, August 14th. Evercore set a $590.00 target price on Applied Materials in a research note on Thursday, October 15th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $600.00 price target on shares of Applied Materials in a research report on Wednesday, October 14th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $605.00 price target (down from $680.00) on shares of Applied Materials in a research report on Friday, August 14th. Finally, William Blair initiated coverage on Applied Materials in a research note on Tuesday, August 11th. They set a “market perform” rating for the company. Thirty investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $625.76.

Applied Materials Stock Up 11.4%

The company has a market capitalization of $294.07 billion, a PE ratio of 31.94, a PEG ratio of 0.65 and a beta of 1.67. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock’s 50 day moving average is $444.84 and its 200 day moving average is $444.66.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share 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 business had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same period in the previous year, the business earned $2.48 EPS. Applied Materials’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. On average, sell-side analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

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 given a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.6%. Applied Materials’s payout ratio is 18.28%.

Insider Activity

In related news, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the sale, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Judy Bruner sold 1,000 shares of the 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 directly owned 25,544 shares in the company, valued at $11,877,960. This trade represents a 3.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently modified their holdings of AMAT. State Street Corp grew its stake in Applied Materials by 85.4% during the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock valued at $50,267,184,000 after purchasing an additional 32,018,892 shares during the last quarter. Bank of America Corp DE purchased a new position in shares of Applied Materials in the second quarter worth about $5,252,863,000. Jupiter Topco LLC purchased a new position in shares of Applied Materials in the second quarter worth about $1,512,287,000. Amundi raised its stake in shares of Applied Materials by 19.0% in the second quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider’s stock worth $5,645,344,000 after purchasing an additional 1,246,876 shares during the last quarter. Finally, BlackRock Inc. lifted its holdings in shares of Applied Materials by 1.6% during the second quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock worth $57,993,650,000 after purchasing an additional 1,237,685 shares during the period. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Company Profile

Applied Materials, Inc develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products.

The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers around the world.