Applied Materials (NASDAQ:AMAT) Stock Price Up 11.2% – Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) rose 11.2% on Thursday . The stock traded as high as $557.62 and last traded at $552.64. Approximately 12,194,860 shares were traded during trading, an increase of 62% from the average daily volume of 7,543,388 shares. The stock had previously closed at $497.01.

Applied Materials News Roundup

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

• Positive Sentiment: Barclays reiterated an Overweight rating on Applied Materials, saying investment in new chip supply remains strong and supporting the stock’s bullish momentum. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Positive Sentiment: Erste Group Bank raised its earnings estimates for Applied Materials, lifting FY2026 EPS forecast to $12.20 and FY2027 to $16.29, while keeping a Buy rating. Applied Materials estimate revision
• Positive Sentiment: Several recent articles highlighted Applied Materials as a top momentum and AI-beneficiary stock, with commentary pointing to strong May performance, heavy hedge fund ownership, and broad analyst support. Is Applied Materials (AMAT) A Good Stock to Buy Now?
• Positive Sentiment: Investor attention is also being fueled by a recent 52-week-high move and reports of continued rotation into chip equipment stocks, reinforcing the view that AMAT remains a favored AI infrastructure name. Why Did AMAT, AMPG, OSCR Stocks Surge To 52-Week Highs Today?
• Neutral Sentiment: Other coverage today was largely repeated “great momentum stock” and “attracting investor attention” pieces, reflecting strong market interest rather than a new company-specific catalyst. Applied Materials (AMAT) is a Great Momentum Stock: Should You Buy?

Analyst Upgrades and Downgrades

AMAT has been the subject of several analyst reports. Argus increased their target price on Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. JPMorgan Chase & Co. increased their target price on Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Sanford C. Bernstein restated an “outperform” rating and set a $525.00 target price on shares of Applied Materials in a report on Friday, May 15th. The Goldman Sachs Group increased their target price on Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, DZ Bank upgraded Applied Materials to a “hold” rating in a report on Monday, February 16th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $483.03.

Applied Materials Trading Up 2.6%

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The firm has a fifty day simple moving average of $427.22 and a two-hundred day simple moving average of $352.62. The firm has a market cap of $450.37 billion, a PE ratio of 53.26, a PEG ratio of 1.54 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. The business’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts forecast that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio is currently 19.91%.

Insider Transactions at Applied Materials

In other news, CFO Brice Hill sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $498.86, for a total value of $1,247,150.00. Following the completion of the transaction, the chief financial officer owned 136,113 shares in the company, valued at $67,901,331.18. This trade represents a 1.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Judy Bruner sold 1,128 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the completion of the transaction, the director owned 26,544 shares of the company’s stock, valued at approximately $11,944,800. The trade was a 4.08% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 53,896 shares of company stock worth $27,135,121. 0.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in shares of 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 valued at $19,731,523,000 after purchasing an additional 330,197 shares during the period. Capital Research Global Investors raised its stake in Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after buying an additional 17,829,377 shares during the last quarter. Ameriprise Financial Inc. raised its stake in Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after buying an additional 3,583,751 shares during the last quarter. Morgan Stanley raised its stake in Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock valued at $2,947,891,000 after buying an additional 373,012 shares during the last quarter. Finally, Norges Bank purchased a new position in Applied Materials during the fourth quarter valued at $2,858,543,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

About Applied Materials

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.