Applied Materials (NASDAQ:AMAT) Trading Up 3.2% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 3.2% during trading on Thursday . The stock traded as high as $629.98 and last traded at $588.66. Approximately 14,014,078 shares changed hands during trading, an increase of 68% from the average daily volume of 8,332,869 shares. The stock had previously closed at $570.50.

Key Applied Materials News

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

• Positive Sentiment: Shares rose as reports that Meta plans to start manufacturing its own AI chip in September boosted expectations for wafer fabrication equipment demand, benefiting Applied Materials alongside peers like Lam Research and KLA. Applied Materials stock jumps as Meta AI chip plan lifts semiconductor names
• Positive Sentiment: Applied Materials’ CEO said the AI investment cycle may last longer than expected and highlighted “tremendous visibility” into demand, reinforcing optimism that chipmakers will keep spending on production tools. Applied Materials CEO Sees ‘Tremendous Visibility’ Into Demand
• Positive Sentiment: Analysts also lifted sentiment with a price-target increase, while commentary around extended chip demand through 2030 and stronger advanced packaging growth added to the bullish case for AMAT. Susquehanna Raises Price Target on Applied Materials, Inc. (AMAT)
• Neutral Sentiment: Broader AI-related stocks and semiconductor equipment names are also moving higher, which is supporting AMAT through sector momentum rather than company-specific news alone. Wall Street Can’t Get Enough of These AI Plays
• Neutral Sentiment: Recent coverage also noted volatility after a pullback in semiconductor shares, suggesting investors are still debating valuation even as the long-term demand story improves. Applied Materials (AMAT) Rebounds On AI Demand Outlook As Fair Value Debate Returns

Wall Street Analysts Forecast Growth

AMAT has been the topic of several recent research reports. HSBC started coverage on Applied Materials in a report on Friday, May 8th. They issued a “buy” rating and a $517.00 price target on the stock. Stifel Nicolaus set a $530.00 target price on Applied Materials in a research report on Friday, May 15th. Raymond James Financial set a $650.00 target price on Applied Materials in a research note on Wednesday, June 10th. Needham & Company LLC boosted their price target on shares of Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Wall Street Zen upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average target price of $578.84.

Applied Materials Stock Up 3.2%

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 stock has a 50-day simple moving average of $509.35 and a 200-day simple moving average of $398.54. The company has a market cap of $467.37 billion, a price-to-earnings ratio of 55.27, a price-to-earnings-growth ratio of 1.54 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating 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 company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the company earned $2.39 earnings per share. The company’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. As a group, analysts predict that Applied Materials, Inc. will post 12.11 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Insider Activity

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the sale, the insider directly owned 356,642 shares in the company, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director directly owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of AMAT. Stonebridge Financial Group LLC lifted its holdings in shares of Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after buying an additional 21 shares during the period. Basecamp Wealth Advisors LLC boosted its stake in Applied Materials by 0.7% during the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after buying an additional 22 shares in the last quarter. Elevation Wealth Partners LLC grew its holdings in Applied Materials by 34.8% during the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after acquiring an additional 24 shares during the period. Private Wealth Management Group LLC grew its holdings in Applied Materials by 4.9% during the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after acquiring an additional 25 shares during the period. Finally, One Day In July LLC raised its position in Applied Materials by 2.4% in the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after acquiring an additional 26 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.