Applied Materials (NASDAQ:AMAT) Trading 3.2% Higher – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) rose 3.2% on Thursday . The stock traded as high as $629.98 and last traded at $588.66. Approximately 14,014,078 shares traded hands during trading, an increase of 68% from the average daily volume of 8,332,869 shares. The stock had previously closed at $570.50.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials rallied after CEO Gary Dickerson said chipmakers have “tremendous visibility” into demand, implying the AI investment cycle could support equipment orders for years rather than quarters. Applied Materials (AMAT) Stock Jumps after CEO Says AI Chip Demand Has Years to Run
• Positive Sentiment: Meta Platforms’ reported plan to begin manufacturing an in-house AI chip helped spark a broader rally in semiconductor equipment stocks, including Applied Materials, on expectations that AI infrastructure spending will remain strong. Applied Materials stock jumps as Meta AI chip plan lifts semiconductor names
• Positive Sentiment: Stifel and Needham both raised their price targets on AMAT and kept buy ratings, reinforcing the view that improving fundamentals and AI-driven demand could support further upside. Applied Materials PT Raised to $650 at Stifel
• Neutral Sentiment: Applied Materials was removed from several Russell value-oriented indices in late June, a classification change that reflects the stock’s shift toward being viewed more as an AI/semiconductor growth name than a value stock. How Investors Are Reacting To Applied Materials (AMAT) Being Dropped From Key Russell Value Indices
• Neutral Sentiment: Short-interest data showed no reported short interest as of July 10, offering little evidence of bearish positioning from the latest filing.

Analyst Upgrades and Downgrades

Several analysts have commented on AMAT shares. HSBC initiated coverage on Applied Materials in a report on Friday, May 8th. They issued a “buy” rating and a $517.00 price target for the company. Mizuho raised their target price on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday. Wells Fargo & Company boosted their target price on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Wolfe Research upped their price target 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. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $589.48.

Applied Materials Trading Up 2.4%

The company has a market capitalization of $478.36 billion, a PE ratio of 56.57, a P/E/G ratio of 1.63 and a beta of 1.57. 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 business has a fifty day moving average price of $517.90 and a 200 day moving average price of $402.29.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the previous year, the business earned $2.39 EPS. The company’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. Analysts expect that Applied Materials, Inc. will post 12.13 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced 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 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the transaction, the insider directly owned 356,642 shares of the company’s stock, valued at $180,204,069.76. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director owned 40,559 shares in the company, valued at approximately $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. In the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of the stock. Capital Research Global Investors increased its holdings 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 worth $8,405,458,000 after purchasing an additional 17,829,377 shares during the last quarter. Norges Bank acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Applied Materials by 617.2% during the 3rd 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 during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of Applied Materials by 40.1% during the 3rd 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 last quarter. Finally, Auto Owners Insurance Co grew its position in shares of 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 worth $86,610,000 after buying an additional 3,357,167 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.