Applied Materials (NASDAQ:AMAT) Shares Gap Up – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares gapped up before the market opened on Thursday . The stock had previously closed at $588.97, but opened at $637.74. Applied Materials shares last traded at $617.3870, with a volume of 2,037,412 shares traded.

More Applied Materials News

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

• Positive Sentiment: Applied Materials introduced new chipmaking systems for DRAM and advanced packaging, including tools aimed at improving AI-chip stacking, memory efficiency, and defect review. Article Title
• Positive Sentiment: Multiple analysts turned more bullish, with price targets raised as high as $715-$720, reflecting expectations that strong demand for semiconductor equipment and AI infrastructure spending will continue. Article Title
• Positive Sentiment: Commentary from market watchers and research notes suggest AMAT could have more upside as AI-led chip demand remains strong and the company’s valuation is still seen as reasonable relative to its growth outlook. Article Title
• Neutral Sentiment: One article highlighted AMAT’s heavy share price rally and raised valuation concerns, but it did not change the broader bullish tone around AI spending and equipment demand. Article Title
• Negative Sentiment: Recent broader AI-chip weakness, including reports that SK Hynix may slow HBM expansion, briefly pressured AMAT and other semiconductor equipment names. Article Title

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on AMAT shares. Zacks Research lowered Applied Materials from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 27th. Seaport Research Partners began coverage on Applied Materials in a research report on Monday, May 4th. They issued a “buy” rating and a $500.00 price target for the company. Weiss Ratings reissued a “buy (b-)” rating on shares of Applied Materials in a research note on Friday, March 27th. HSBC initiated coverage on Applied Materials in a report on Friday, May 8th. They set a “buy” rating and a $517.00 price objective on the stock. Finally, Stifel Nicolaus set a $530.00 price objective on shares of Applied Materials in a research note on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $501.26.

Applied Materials Price Performance

The stock’s 50-day moving average is $463.44 and its 200 day moving average is $372.78. The stock has a market capitalization of $502.72 billion, a PE ratio of 59.42, a P/E/G ratio of 1.63 and a beta of 1.67. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating 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 analyst estimates of $7.68 billion. During the same quarter in the prior year, the business earned $2.39 EPS. The company’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. As a group, equities analysts predict that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Activity

In other news, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction dated 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 completion of the sale, the director directly owned 40,559 shares in the company, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Prabu G. Raja sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider directly owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 199,767 shares of company stock valued at $114,104,709. 0.30% of the stock is currently owned by company insiders.

Institutional Trading of Applied Materials

Institutional investors have recently added to or reduced their stakes in the business. Basecamp Wealth Advisors LLC increased its stake in shares of Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock worth $1,124,000 after purchasing an additional 22 shares during the last quarter. Sapient Capital LLC acquired a new stake in shares of Applied Materials in the 1st quarter valued at $217,000. Western Wealth Management LLC lifted its stake in shares of Applied Materials by 16.1% in the 1st quarter. Western Wealth Management LLC now owns 4,829 shares of the manufacturing equipment provider’s stock valued at $1,650,000 after purchasing an additional 669 shares during the last quarter. Militia Capital Management LLC bought a new stake in Applied Materials in the first quarter worth $295,000. Finally, Pine Valley Investments Ltd Liability Co boosted its holdings in Applied Materials by 10.9% in the first quarter. Pine Valley Investments Ltd Liability Co now owns 29,297 shares of the manufacturing equipment provider’s stock worth $10,013,000 after purchasing an additional 2,890 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.