Applied Materials (NASDAQ:AMAT) Shares Down 3.5% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s share price dropped 3.5% on Wednesday . The stock traded as low as $488.55 and last traded at $496.17. 6,540,629 shares changed hands during trading, a decline of 21% from the average session volume of 8,263,020 shares. The stock had previously closed at $514.33.

Trending Headlines about Applied Materials

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

• Positive Sentiment: An analyst upgrade reportedly supported a bullish view of Applied Materials’ semiconductor-equipment outlook, while Zacks also included AMAT on its No. 1 (Strong Buy) momentum list. Applied Materials Trading Higher Following Analyst Upgrade ASX vs. AMAT: Which AI Semiconductor Stock is the Better Buy?
• Positive Sentiment: Recent commentary remains constructive on AMAT’s long-term growth, citing AI-driven semiconductor demand, memory investment and the company’s broad equipment portfolio. Recent earnings also showed revenue growth and an EPS beat, supporting the fundamental case.
• Neutral Sentiment: A comparison with ASE Technology argues that ASE offers faster growth, improving margins and a lower valuation, highlighting competitive and valuation considerations for investors choosing among AI semiconductor stocks. ASX vs. AMAT: Which AI Semiconductor Stock is the Better Buy?
• Negative Sentiment: Applied Materials is falling alongside Lam Research and Teradyne in a second session of heavy selling. The sector-wide decline indicates concern that elevated AI-related capital spending expectations may be too aggressive or may slow, creating downside risk for richly valued chip-equipment shares after their substantial 2026 rally. What’s Prompting the Selloff in Chip Equipment Stocks?
• Negative Sentiment: Some analysts caution that AMAT is “priced for perfection.” Its premium valuation leaves less room for execution missteps or weaker-than-expected AI and semiconductor-equipment demand, even though the longer-term outlook remains favorable.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on AMAT shares. HC Wainwright set a $850.00 target price on shares of Applied Materials in a research report on Monday, June 29th. Wells Fargo & Company lifted their price target on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research note on Friday, June 26th. Stifel Nicolaus increased their price target on shares of Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 10th. Susquehanna increased their price target on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research note on Tuesday, June 30th. Finally, Mizuho boosted their target price on shares of Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Applied Materials presently has a consensus rating of “Moderate Buy” and a consensus price target of $643.50.

Applied Materials Stock Down 3.5%

The firm has a market capitalization of $393.94 billion, a price-to-earnings ratio of 42.77, a P/E/G ratio of 1.25 and a beta of 1.61. The stock has a fifty day moving average of $565.31 and a two-hundred day moving average of $448.45. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business’s revenue was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts anticipate that Applied Materials, Inc. will post 12.65 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. 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 (DPR) is presently 18.28%.

Insider Activity

In related news, SVP Timothy M. Deane sold 8,621 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. The trade was a 6.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the sale, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 278,088 shares of company stock worth $169,654,805. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently modified their holdings of AMAT. Field & Main Bank bought a new stake in shares of Applied Materials in the second quarter valued at approximately $2,155,000. SPX Gestao de Recursos Ltda purchased a new position in Applied Materials in the 2nd quarter valued at approximately $904,000. Wellington Management Group LLP grew its stake in Applied Materials by 197.2% in the 2nd quarter. Wellington Management Group LLP now owns 1,061,899 shares of the manufacturing equipment provider’s stock valued at $767,753,000 after buying an additional 704,629 shares in the last quarter. Lombard Odier Asset Management Europe Ltd bought a new stake in Applied Materials during the 2nd quarter valued at $15,154,000. Finally, Archer Investment Corp bought a new stake in Applied Materials during the 2nd quarter valued at $616,000. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.