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

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 4.3% during mid-day trading on Wednesday . The stock traded as high as $623.35 and last traded at $592.92. Approximately 10,995,858 shares changed hands during mid-day trading, an increase of 44% from the average session volume of 7,645,202 shares. The stock had previously closed at $568.23.

Applied Materials News Summary

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

• Positive Sentiment: Investor enthusiasm remains strong after Applied Materials was highlighted as a key beneficiary of AI infrastructure spending, with reports saying Citi lifted its price target and the stock reached fresh highs on optimism around memory and chip equipment demand. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials introduced SENZ, an integrated AI smart-glasses platform with Qualcomm and EssilorLuxottica, which expands the company’s growth story beyond semiconductor equipment and could open a new market opportunity. Applied Materials (AMAT) Launches SENZ With Qualcomm And EssilorLuxottica For AI Eyewear
• Positive Sentiment: Several recent commentaries argued that AMAT is well positioned for the AI equipment super-cycle, citing strong earnings, robust chip-tool demand, and a favorable long-term growth outlook. Applied Materials: The Cheapest Seat On The AI Equipment Super-Cycle
• Neutral Sentiment: Multiple insiders, including CEO Gary Dickerson and SVP Omkaram Nalamasu, sold shares over the last couple of days. The sales were large in dollar terms, but they do not necessarily signal a change in the company’s fundamentals. Why Applied Materials Insiders Sold $65 Million Worth of Stock
• Negative Sentiment: The latest insider-sale headlines, including Gary Dickerson’s sale of 71,727 shares, could create short-term pressure on the stock by raising valuation concerns after a sharp run-up. Gary Dickerson Sells 71,727 Shares of Applied Materials (NASDAQ:AMAT) Stock

Analyst Ratings Changes

A number of brokerages recently weighed in on AMAT. Wolfe Research lifted their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Cantor Fitzgerald upped their price objective on shares of Applied Materials from $575.00 to $650.00 and gave the stock an “overweight” rating in a report on Wednesday, June 10th. Zacks Research lowered shares of Applied Materials from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Susquehanna raised their target price on shares of Applied Materials from $435.00 to $500.00 and gave the company a “positive” rating in a research note on Thursday, April 9th. Finally, Wells Fargo & Company boosted their price target on shares of Applied Materials from $435.00 to $520.00 and gave the stock an “overweight” rating in a research report on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, Applied Materials presently has a consensus rating of “Moderate Buy” and a consensus price target of $489.16.

Applied Materials Stock Performance

The business has a fifty day moving average of $446.42 and a 200-day moving average of $363.12. The stock has a market capitalization of $489.96 billion, a price-to-earnings ratio of 57.94, a price-to-earnings-growth ratio of 1.65 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

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, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same period in the previous year, the business earned $2.39 earnings per share. Applied Materials’s revenue for the quarter 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. On average, equities analysts anticipate that Applied Materials, Inc. will post 12.1 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 dividend yield of 0.3%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insiders Place Their Bets

In other news, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was 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 of the company’s stock, valued at $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction on 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 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. Over the last ninety days, insiders sold 189,767 shares of company stock worth $107,769,409. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Large investors have recently made changes to their positions in the company. Capital Research Global Investors raised its stake in Applied Materials by 119.8% during the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares during the period. Norges Bank acquired a new stake in shares of Applied Materials in the fourth quarter worth $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Applied Materials by 617.2% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock valued at $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Ameriprise Financial Inc. raised its position in Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after buying an additional 3,583,751 shares during the period. Finally, Auto Owners Insurance Co raised its position in Applied Materials by 25,824.4% during the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after buying an additional 3,357,167 shares during the period. 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.