Applied Materials (NASDAQ:AMAT) Rating Lowered to Hold at Wall Street Zen

Applied Materials (NASDAQ:AMAT) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Saturday, Wall Street Zen reports.

A number of other brokerages have also recently issued reports on AMAT. Stifel Nicolaus upped their target price on Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, July 10th. UBS Group boosted their price objective on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $605.00 target price on shares of Applied Materials in a research report on Friday, August 14th. HSBC reaffirmed a “buy” rating and issued a $683.00 target price on shares of Applied Materials in a report on Monday, July 27th. Finally, Raymond James Financial set a $650.00 price target on Applied Materials in a report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $658.45.

Applied Materials Stock Performance

Shares of NASDAQ:AMAT opened at $456.49 on Friday. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The company’s 50 day moving average is $513.89 and its two-hundred day moving average is $464.57. The company has a market cap of $362.27 billion, a PE ratio of 39.35, a P/E/G ratio of 1.27 and a beta of 1.60. Applied Materials has a 52 week low of $167.18 and a 52 week high of $739.67.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.Applied Materials’s quarterly revenue was up 24.8% on a year-over-year basis. During the same period last year, the firm earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts predict that Applied Materials will post 12.76 earnings per share for the current fiscal year.

Insider Activity

In other Applied Materials news, CEO Gary Dickerson sold 71,727 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the sale, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s 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 transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 202,061 shares of company stock worth $128,478,941. 0.30% of the stock is owned by corporate insiders.

Institutional Trading of Applied Materials

A number of large investors have recently made changes to their positions in the stock. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in Applied Materials during the fourth quarter worth approximately $26,000. Harborfront Financial Group LLC purchased a new stake in Applied Materials in the 2nd quarter worth approximately $27,000. Financial Freedom LLC purchased a new stake in Applied Materials in the 1st quarter worth approximately $28,000. Finally, Orion Capital Management LLC acquired a new position in Applied Materials in the 2nd quarter valued at $33,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: CEO Gary Dickerson said the AI boom remains durable, citing customer orders that extend years into the future. Commentary from industry peers reportedly supports continued demand for semiconductor manufacturing equipment, strengthening the growth outlook for AMAT. Applied Materials AI demand outlook
• Positive Sentiment: Applied Materials maintained its quarterly dividend at $0.53 per share, payable December 10 to shareholders of record November 19. The payment follows a 15% dividend increase announced in March and signals continued confidence in cash generation. Applied Materials dividend announcement
• Positive Sentiment: AMAT’s latest reported quarter exceeded expectations, with adjusted EPS of $3.50 versus a $3.40 consensus estimate and revenue of $9.12 billion versus $8.99 billion. Revenue increased 24.8% year over year, supporting the bullish AI and semiconductor-cycle narrative.
• Neutral Sentiment: Investor articles are comparing AMAT favorably with Intel because Applied Materials is profitable, has relatively low debt and supplies the equipment needed to build advanced chips. However, the stock’s roughly 39 price-to-earnings ratio leaves less room for execution disappointments. Applied Materials versus Intel comparison
• Neutral Sentiment: Analyst coverage remains broadly favorable, with a consensus “Moderate Buy” rating and an average target of $658.45. Nonetheless, the wide range between bullish and bearish scenarios highlights uncertainty surrounding AI demand, semiconductor cyclicality and valuation.
• Negative Sentiment: Director Judy Bruner sold 1,000 shares for approximately $465,000, reducing her holdings by 3.77%. She still retains a substantial position, so the transaction is a modest sentiment negative rather than a major change in insider conviction. SEC insider sale filing
• Negative Sentiment: Risk-focused commentary notes that AMAT tends to amplify market moves. Its beta of 1.60 and elevated valuation could make the stock vulnerable if AI spending expectations weaken or broader technology shares pull back. Applied Materials volatility analysis

Applied Materials Company Profile

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.