Applied Materials (NASDAQ:AMAT) Trading Up 3.7% – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 3.7% during mid-day trading on Monday . The stock traded as high as $641.18 and last traded at $640.18. 10,441,349 shares traded hands during mid-day trading, an increase of 35% from the average daily volume of 7,747,838 shares. The stock had previously closed at $617.11.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Wells Fargo reportedly lifted its price target on Applied Materials and kept a bullish stance, reinforcing the view that AI infrastructure spending can support more upside for the stock. Why Applied Materials Just Got a New Street-High Price Target
• Positive Sentiment: Citi also raised its price target on AMAT, citing growing semiconductor equipment demand and a favorable backdrop from AI chip buildouts, which supports the bullish long-term thesis. How Applied Materials Could Become the Next $1 Trillion Chip Stock
• Positive Sentiment: Analyst commentary highlighted AMAT as a preferred “picks-and-shovels” way to play AI, with Applied Materials seen as benefiting from broader chip-industry spending rather than dependence on one customer or device maker. Forget Nvidia: Philippe Laffont reveals his preferred way to gain AI exposure
• Positive Sentiment: Multiple recent articles argued that Applied Materials may still be attractive versus peers like KLA because it offers AI-led growth at a lower relative valuation. KLAC vs. AMAT: Which Chip Equipment Stock Is the Better Buy Now?
• Neutral Sentiment: Insider selling by executive Prabu G. Raja drew attention, but the transaction was relatively modest and does not by itself change the company’s operating outlook. SEC Form 4 filing
• Negative Sentiment: Some investors remain concerned that AMAT’s valuation has run ahead of fundamentals after a strong rally, which could create volatility if AI spending expectations soften. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?
• Negative Sentiment: Earlier weakness in chip stocks tied to AI spending fears and comments about slower HBM expansion at SK Hynix also pressured sentiment across the semiconductor equipment group. Applied Materials, Teradyne, and Entegris Stocks Trade Down, What You Need To Know

Wall Street Analyst Weigh In

AMAT has been the topic of several recent research reports. Needham & Company LLC increased their price target on Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a report on Friday, May 15th. Morgan Stanley reaffirmed an “equal weight” rating and set a $502.00 price objective (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. Wells Fargo & Company boosted their price objective on shares of Applied Materials from $520.00 to $715.00 and gave the company an “overweight” rating in a research report on Monday. Seaport Research Partners initiated coverage on shares of Applied Materials in a research note on Monday, May 4th. They issued a “buy” rating and a $500.00 target price on the stock. Finally, Royal Bank Of Canada raised their target price on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $501.26.

Applied Materials Price Performance

The stock has a 50 day moving average of $459.63 and a 200-day moving average of $370.55. 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 market capitalization of $465.69 billion, a P/E ratio of 55.07, a price-to-earnings-growth ratio of 1.78 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business’s revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts anticipate that Applied Materials, Inc. will post 12.1 earnings per share for the current fiscal 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 $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.

Insider Buying and Selling at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction 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 transaction, the director owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares of the company’s stock, valued at $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 199,767 shares of company stock valued at $114,104,709. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of the business. Basecamp Wealth Advisors LLC lifted its holdings 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 worth $1,124,000 after buying an additional 22 shares during the period. Private Wealth Management Group LLC raised its position in shares of Applied Materials by 4.9% in the 1st 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 in the last quarter. One Day In July LLC lifted its stake in shares of Applied Materials by 2.4% during the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares during the last quarter. Pinnacle Bancorp Inc. lifted its stake in shares of Applied Materials by 1.3% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares during the last quarter. Finally, Horst & Graben Wealth Management LLC boosted its position in Applied Materials by 2.1% during the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock valued at $446,000 after purchasing an additional 27 shares in the last quarter. 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.