Applied Materials (NASDAQ:AMAT) Trading Up 4.3% – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price shot up 4.3% during mid-day trading on Wednesday . The stock traded as high as $623.35 and last traded at $592.92. Approximately 10,995,858 shares traded hands during trading, an increase of 44% from the average session volume of 7,645,202 shares. The stock had previously closed at $568.23.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Citi’s higher price target and broader optimism around AI spending are fueling demand for semiconductor equipment stocks, with AMAT singled out as a beneficiary. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials unveiled SENZ, a fully integrated visual system for next-generation smart glasses, expanding its addressable market beyond semiconductor tools and into AI/AR hardware infrastructure. Applied Materials shares jump on launch of integrated AR smart glasses system
• Positive Sentiment: Its Semiconductor Systems segment is still benefiting from AI-driven chip investments, with record revenue and strength in advanced packaging pointing to continued momentum in 2026. Can AMAT’s Semiconductor Systems Segment Sustain Momentum in 2026?
• Positive Sentiment: A long-term partnership with EssilorLuxottica to develop AR optics and AI-powered smart eyewear gives AMAT another growth narrative and supports the view that the company is building new revenue streams. EssilorLuxottica and Applied Materials Join Forces to Advance Augmented Reality Optics Platforms for Next-Generation Smart Glasses
• Neutral Sentiment: Several commentary pieces argue that semiconductor equipment suppliers are capturing outsized value in the AI supply chain, reinforcing a favorable industry backdrop for AMAT. Why Semiconductor Equipment Suppliers Are Crushing Their Customers in 2026
• Negative Sentiment: Some market commentary notes AMAT’s valuation has become stretched, which could make the stock more vulnerable if AI demand or analyst enthusiasm cools. Applied Materials valuation tops dot-com peak

Wall Street Analysts Forecast Growth

Several research firms have commented on AMAT. Needham & Company LLC increased their target price on shares of Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Wolfe Research increased their target price 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. Seaport Research Partners began coverage on shares of Applied Materials in a research report on Monday, May 4th. They set a “buy” rating and a $500.00 target price on the stock. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. Finally, HSBC began coverage on shares of Applied Materials in a research report on Friday, May 8th. They set a “buy” rating and a $517.00 target price on the stock. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $489.16.

Applied Materials Trading Up 4.3%

The company has a market capitalization of $470.75 billion, a price-to-earnings ratio of 55.67, a P/E/G ratio of 1.63 and a beta of 1.67. The company has a 50-day moving average price of $436.36 and a 200-day moving average price of $358.14. 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 issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating 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 company had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the business posted $2.39 earnings per share. The firm’s revenue 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. Research analysts predict that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given 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 yield of 0.4%. Applied Materials’s payout ratio is 19.91%.

Insider Activity at Applied Materials

In other Applied Materials news, Director Judy Bruner sold 1,128 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the sale, the director directly owned 26,544 shares in the company, valued at $11,944,800. This trade represents a 4.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares in the company, valued at $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 53,896 shares of company stock valued at $27,135,121 in the last 90 days. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the company. Private Wealth Management Group LLC grew its position in Applied Materials by 4.9% during the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after buying an additional 25 shares in the last quarter. One Day In July LLC grew its position in Applied Materials by 2.4% during the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after buying an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. grew its position in Applied Materials by 1.3% during the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after buying an additional 27 shares in the last quarter. Horst & Graben Wealth Management LLC grew its position in Applied Materials by 2.1% during the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after buying an additional 27 shares in the last quarter. Finally, Warther Private Wealth LLC grew its position in Applied Materials by 1.5% during the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after buying an additional 28 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

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.