Applied Materials (NASDAQ:AMAT) Stock Price Down 4.7% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded down 4.7% during mid-day trading on Friday . The company traded as low as $530.01 and last traded at $536.25. 6,057,719 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 8,254,339 shares. The stock had previously closed at $562.80.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials is still viewed favorably versus a peer in advanced packaging, with commentary highlighting its AI-related packaging exposure, broad chipmaking portfolio, and high-margin services as reasons it may be a safer long-term bet. AMAT vs. Q: Which Advanced Packaging Stock is a Safer Bet Right Now?
• Positive Sentiment: Analysts and market commentary continue to point to AI-led semiconductor demand, with Applied Materials repeatedly cited as one of the stocks benefiting from ongoing chip investment and stronger equipment spending. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Positive Sentiment: Applied Materials announced it will report fiscal third-quarter 2026 results on August 13, and recent previews suggest analysts expect another double-digit earnings increase, which can support sentiment ahead of the print. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Neutral Sentiment: The company’s short-interest update appears to be data-noisy, showing zero shares outstanding and no meaningful days-to-cover signal, so it is unlikely to be a real trading driver.
• Neutral Sentiment: Applied Materials remains part of a broader semiconductor sector that is experiencing profit-taking and valuation-driven consolidation after a powerful AI rally, which is weighing on sentiment across the group. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing?
• Negative Sentiment: The pullback in semiconductor names suggests investors are locking in gains and reassessing high expectations, which is pressuring AMAT along with the rest of the sector despite solid fundamentals.

Analyst Ratings Changes

A number of research firms have weighed in on AMAT. Wolfe Research boosted their target price on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Wells Fargo & Company lifted their price objective on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research note on Friday, June 26th. Bank of America boosted their price objective on Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Wall Street Zen upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $593.84.

Applied Materials Stock Down 4.7%

The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The company has a market capitalization of $425.76 billion, a price-to-earnings ratio of 50.35, a price-to-earnings-growth ratio of 1.36 and a beta of 1.57. The firm’s 50-day simple moving average is $544.21 and its 200-day simple moving average is $423.10.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the business earned $2.39 earnings per share. The firm’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Sell-side analysts forecast that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Announces Dividend

The company 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 $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio is 19.91%.

Insider Buying and Selling

In other news, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction that occurred 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 sale, the director owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the business’s stock in a transaction that occurred on 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 sale, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC lifted its holdings in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after acquiring an additional 2,771 shares during the period. Sivia Capital Partners LLC increased its stake in Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after acquiring an additional 679 shares during the period. Forefront Wealth Partners LLC bought a new stake in Applied Materials in the second quarter valued at about $410,000. Schnieders Capital Management LLC. raised its position in Applied Materials by 30.1% in the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. raised its position in Applied Materials by 59.3% in the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares in the last quarter. 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.