Applied Materials’ (AMAT) “Buy” Rating Reaffirmed at B. Riley Financial

Applied Materials (NASDAQ:AMAT)‘s stock had its “buy” rating reiterated by stock analysts at B. Riley Financial in a research report issued on Friday,Benzinga reports. They currently have a $700.00 price objective on the manufacturing equipment provider’s stock, down from their previous price objective of $790.00. B. Riley Financial’s price objective suggests a potential upside of 37.36% from the company’s previous close.

A number of other equities analysts have also commented on AMAT. Morgan Stanley increased their price target on shares of Applied Materials from $502.00 to $647.00 and gave the stock an “equal weight” rating in a report on Monday, July 6th. Barclays increased their target price on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research note on Thursday, June 11th. Cantor Fitzgerald raised their price target on Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. William Blair assumed coverage on Applied Materials in a research note on Tuesday. They set a “market perform” rating for the company. Finally, Bank of America reduced their price objective on Applied Materials from $720.00 to $650.00 and set a “buy” rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $607.42.

Applied Materials Price Performance

NASDAQ AMAT traded down $24.95 during trading on Friday, reaching $509.59. The company’s stock had a trading volume of 4,164,252 shares, compared to its average volume of 8,187,103. The stock has a market capitalization of $404.60 billion, a PE ratio of 47.93, a P/E/G ratio of 1.38 and a beta of 1.61. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The firm has a fifty day moving average of $563.06 and a 200 day moving average of $444.45. Applied Materials has a one year low of $154.46 and a one year high of $739.67.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials’s revenue was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts expect that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the sale, the chief executive officer directly owned 1,599,843 shares in the company, valued at $1,176,236,570.46. This represents a 1.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Prabu G. Raja sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $633.53, for a total value of $6,335,300.00. Following the transaction, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. increased its position in shares of Applied Materials by 1.6% in the second quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock valued at $57,993,650,000 after acquiring an additional 1,237,685 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock worth $19,731,523,000 after purchasing an additional 330,197 shares during the period. Capital Research Global Investors grew its stake in shares of Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after purchasing an additional 17,829,377 shares during the last quarter. Morgan Stanley lifted its holdings in Applied Materials by 3.4% in the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares during the period. Finally, Norges Bank bought a new stake in shares of Applied Materials in the 4th quarter worth approximately $2,858,543,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

More Applied Materials News

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

• Positive Sentiment: Applied Materials reported record quarterly revenue of approximately $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded the $3.40 consensus estimate. Gross margin reached a record 50.4%, supported by strong demand for equipment used in AI infrastructure and advanced chips. Applied Materials Announces Third Quarter 2026 Results
• Positive Sentiment: Management issued better-than-expected fourth-quarter guidance, projecting revenue of $9.8 billion to $10.8 billion versus a $9.5 billion consensus forecast, and EPS of $3.82 to $4.22 versus expectations of $3.65. Executives also indicated that AI-related demand provides unusually strong visibility into another potential record year in 2027. Applied Materials forecasts quarterly revenue above estimates
• Positive Sentiment: Needham reaffirmed its buy rating and set a $740 price target, implying significant upside from the reference price. Analysts continue to view Applied Materials as a key beneficiary of semiconductor manufacturers’ AI-related capital spending. Needham rating update
• Neutral Sentiment: Investors are likely to monitor equipment orders, DRAM and advanced-packaging demand, China exposure, and whether AI-related capital expenditures remain durable over the next several quarters. These metrics may determine whether the pullback is temporary or signals a broader semiconductor-cycle concern. Key metrics after earnings
• Negative Sentiment: Despite the earnings and guidance beats, shares fell because results did not clear an exceptionally high bar following a sharp rally. Investors questioned whether Applied Materials is growing faster than competitors and remain alert to intensifying competition, potential margin pressure, and a possible peak in the semiconductor capital-spending cycle. Applied Materials slips as investors seek faster growth

Applied Materials Company Profile

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.