Applied Materials (NASDAQ:AMAT) Trading 4.3% Higher – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares were up 4.3% during mid-day trading on Wednesday . The company traded as high as $553.75 and last traded at $548.15. Approximately 6,732,141 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 8,181,155 shares. The stock had previously closed at $525.61.

Key Applied Materials News

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

• Positive Sentiment: Investors are focusing on the company’s role as a “picks-and-shovels” supplier to the AI-chip industry. Strong data-center investment and demand for advanced chips could support orders for Applied Materials’ deposition, etch and inspection equipment. Is Applied Materials the Picks-and-Shovels Play on AI Chips?
• Positive Sentiment: Analysts expect another strong quarter, with previews citing approximately $9 billion in revenue, up about 23% year over year, and adjusted earnings of roughly $3.39 per share. Expectations for record revenue are raising the potential for a positive surprise if AI-related demand and margins exceed forecasts. Applied Materials Earnings Preview
• Positive Sentiment: Applied Materials’ EPIC Center is expanding its semiconductor research network through a collaboration with UC Berkeley. The partnership could accelerate process innovation and commercialization, supporting the company’s longer-term competitive position. UC Berkeley to Join Applied Materials’ EPIC Center
• Neutral Sentiment: The stock has recovered strongly this year but remains well below its June peak, leaving Thursday’s results and management outlook as the next major catalyst. Options traders reportedly anticipate a substantial post-earnings move. Expected Post-Earnings Move
• Negative Sentiment: Valuation and competitive risks are limiting analyst enthusiasm. William Blair initiated coverage with a “market perform” rating, while another analyst maintained a Hold, citing strong AI fundamentals but less upside after the stock’s rally and elevated valuation. Analyst Maintains Hold on Applied Materials

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AMAT. Susquehanna raised their price objective on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. Wells Fargo & Company upped 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. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $645.00 target price on shares of Applied Materials in a research report on Monday, August 3rd. Cantor Fitzgerald lifted their price target on shares of Applied Materials from $650.00 to $850.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Finally, Erste Group Bank cut shares of Applied Materials from a “buy” rating to a “hold” rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and a consensus price target of $603.23.

Applied Materials Stock Performance

The company has a market cap of $435.21 billion, a PE ratio of 51.47, a PEG ratio of 1.32 and a beta of 1.61. The stock has a 50 day simple moving average of $561.46 and a two-hundred day simple moving average of $441.34. 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 announced 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. The business had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company’s revenue for the quarter was up 11.4% compared to the same quarter last year. During the same period last year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts predict that Applied Materials, Inc. will post 12.17 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently declared 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. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insider Buying and Selling

In other news, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently added to or reduced their stakes in the company. CFO4Life Group LLC purchased a new stake in Applied Materials in the 2nd quarter valued at approximately $474,000. Quantbot Technologies LP boosted its stake in shares of Applied Materials by 61.3% in the second quarter. Quantbot Technologies LP now owns 11,373 shares of the manufacturing equipment provider’s stock valued at $8,223,000 after buying an additional 4,324 shares in the last quarter. Findlay Park Partners LLP grew its holdings in Applied Materials by 77.2% during the second quarter. Findlay Park Partners LLP now owns 277,860 shares of the manufacturing equipment provider’s stock worth $200,893,000 after acquiring an additional 121,060 shares during the period. WealthShield Partners LLC grew its holdings in Applied Materials by 36.9% during the second quarter. WealthShield Partners LLC now owns 11,119 shares of the manufacturing equipment provider’s stock worth $8,039,000 after acquiring an additional 2,995 shares during the period. Finally, W1M Asset Management Ltd raised its position in Applied Materials by 38.8% in the second quarter. W1M Asset Management Ltd now owns 1,417 shares of the manufacturing equipment provider’s stock worth $1,025,000 after acquiring an additional 396 shares in the last quarter. 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.