Applied Materials (NASDAQ:AMAT) Shares Up 4.3% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) shot up 4.3% on Friday . The company traded as high as $460.20 and last traded at $454.71. 5,983,282 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 8,129,665 shares. The stock had previously closed at $435.91.

More Applied Materials News

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

• Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum?
• Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth?
• Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst
• Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run?
• Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles

Analyst Ratings Changes

Several brokerages have recently issued reports on AMAT. Weiss Ratings raised shares of Applied Materials from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday, August 25th. Argus set a $600.00 target price on shares of Applied Materials in a report on Tuesday, August 18th. B. Riley Financial restated a “buy” rating and issued a $700.00 price target (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. TD Cowen reaffirmed a “buy” rating and issued a $700.00 price target on shares of Applied Materials in a report on Friday, August 14th. Finally, Craig Hallum increased their price objective on Applied Materials from $530.00 to $585.00 and gave the company a “buy” rating in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and an average target price of $658.45.

Applied Materials Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The firm has a market cap of $360.86 billion, a price-to-earnings ratio of 39.20, a price-to-earnings-growth ratio of 1.27 and a beta of 1.60. The stock’s fifty day moving average price is $533.24 and its 200-day moving average price is $460.59.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same quarter last year, the business posted $2.48 EPS. The company’s revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities research analysts predict that Applied Materials, Inc. will post 12.76 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s payout ratio is currently 18.28%.

Insider Activity

In other Applied Materials news, CEO Gary Dickerson sold 71,727 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the transaction, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at $1,006,503,625. The trade was a 4.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Thomas Iannotti sold 9,250 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares in the company, valued at $24,326,071.43. This represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 231,692 shares of company stock valued at $146,114,059 in the last ninety days. Corporate insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials during the 4th quarter valued at $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials during the fourth quarter worth $26,000. Harborfront Financial Group LLC acquired a new stake in Applied Materials during the second quarter valued at $27,000. Financial Freedom LLC acquired a new stake in Applied Materials during the first quarter valued at $28,000. Finally, Dogwood Wealth Management LLC grew its stake in Applied Materials by 52.4% in the fourth quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider’s stock valued at $33,000 after purchasing an additional 44 shares in the last quarter. Institutional investors and hedge funds 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.