Applied Materials (NASDAQ:AMAT) Stock Price Down 3.2% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares fell 3.2% during trading on Monday . The stock traded as low as $521.57 and last traded at $522.12. Approximately 6,967,291 shares changed hands during trading, a decline of 15% from the average daily volume of 8,213,133 shares. The stock had previously closed at $539.14.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied Materials remains a key “picks-and-shovels” beneficiary of artificial-intelligence infrastructure spending. Its semiconductor-manufacturing equipment supports AI-chip and data-center production, while its broad technology portfolio and strong earnings outlook underpin the bullish case. AMAT to Post Q3 Earnings: Time to Buy, Sell or Hold the Stock?
• Positive Sentiment: Potential demand from Tesla and SpaceX’s proposed $16.8 billion “Terafab” project could benefit Applied Materials and other chip-equipment suppliers if the plan advances. The Zacks Analyst Blog Highlights SpaceX, Tesla, KLA Corp, Onto Innovation, Applied Materials and Lam Research
• Positive Sentiment: One analyst reportedly raised the company’s fiscal 2027 EPS forecast, suggesting continued confidence in Applied Materials’ longer-term earnings trajectory. FY2027 EPS Forecast for Applied Materials Lifted by Analyst
• Neutral Sentiment: Investors are focused on estimates beyond revenue and EPS, including orders, margins and segment trends, which may determine whether the earnings report supports the stock’s AI-driven valuation. Countdown to Applied Materials Q3 Earnings
• Negative Sentiment: AMAT has become highly sensitive to the earnings release: options markets imply the possibility of a double-digit move, and the stock remains well below its recent high. Any weaker-than-expected guidance, chip-equipment demand or China-related commentary could amplify selling pressure. Earnings Volatility Watch

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on AMAT shares. Cantor Fitzgerald boosted their price objective on Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a report on Monday, June 29th. Sanford C. Bernstein restated an “outperform” rating and set a $525.00 target price on shares of Applied Materials in a report on Friday, May 15th. Barclays lifted their target price on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Truist Financial set a $575.00 price target on shares of Applied Materials in a research note on Thursday, May 28th. Finally, KeyCorp increased their price target on shares of Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $603.23.

Applied Materials Stock Performance

The firm has a market capitalization of $414.54 billion, a price-to-earnings ratio of 49.03, a PEG ratio of 1.37 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 50 day moving average price of $559.47 and a 200-day moving average price of $438.49.

Applied Materials (NASDAQ:AMAT) last released its 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 return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same period in the previous year, the firm posted $2.39 EPS. Applied Materials’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. As a group, sell-side analysts expect that Applied Materials, Inc. will post 12.17 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 $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Insider Buying and Selling at Applied Materials

In related news, SVP Timothy M. Deane sold 8,621 shares of the company’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 transaction of $5,092,941.96. Following the sale, the senior vice president directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the firm’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 transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This trade represents a 4.06% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently modified their holdings of the company. Essential Partners LLC raised its holdings in shares of Applied Materials by 23.6% in the 2nd quarter. Essential Partners LLC now owns 183 shares of the manufacturing equipment provider’s stock valued at $132,000 after purchasing an additional 35 shares in the last quarter. Smith Partners Wealth Management LLC acquired a new position in shares of Applied Materials during the second quarter worth $244,000. Empirical Asset Management LLC increased its holdings in Applied Materials by 64.0% in the second quarter. Empirical Asset Management LLC now owns 3,285 shares of the manufacturing equipment provider’s stock valued at $2,375,000 after buying an additional 1,282 shares during the last quarter. Chancellor Financial Group WB LP purchased a new position in Applied Materials in the second quarter valued at $328,000. Finally, Stevens Capital Partners raised its stake in Applied Materials by 27.5% in the second quarter. Stevens Capital Partners now owns 1,011 shares of the manufacturing equipment provider’s stock valued at $731,000 after buying an additional 218 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

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.