Applied Materials (NASDAQ:AMAT) Trading Up 4.1% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) shares rose 4.1% during trading on Tuesday . The company traded as high as $739.67 and last traded at $723.00. Approximately 15,945,656 shares traded hands during trading, an increase of 95% from the average daily volume of 8,164,900 shares. The stock had previously closed at $694.64.

Key Applied Materials News

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

• Positive Sentiment: KeyBanc and other Wall Street firms raised their outlooks on Applied Materials ahead of earnings, citing upside tied to AI infrastructure spending and improved near-term fundamentals.
• Positive Sentiment: Erste Group lifted its FY2026 and FY2027 earnings estimates for Applied Materials and reiterated a Buy rating, signaling confidence that earnings momentum can continue.
• Positive Sentiment: The stock has had a historic run, including its best monthly rally since 1975, as analysts boosted price targets and investors rotated into semiconductor equipment names benefiting from the AI buildout.
• Positive Sentiment: Applied Materials was also added to the Russell Top 50 index, which can increase institutional visibility and support demand from index-linked funds.
• Neutral Sentiment: Recent commentary comparing AMAT with ASML and peer chip-equipment stocks has highlighted Applied Materials as a strong beneficiary of the AI capex cycle, but also raised valuation questions after the sharp move higher.
• Negative Sentiment: Some traders and analysts are warning that the stock is now extremely overbought, and any earnings disappointment could trigger a pullback after the rapid run-up.

Analysts Set New Price Targets

AMAT has been the subject of several research analyst reports. Cantor Fitzgerald lifted their price objective on Applied Materials from $650.00 to $850.00 and gave the stock an “overweight” rating in a research report on Monday. Seaport Research Partners started coverage on Applied Materials in a research note on Monday, May 4th. They set a “buy” rating and a $500.00 target price for the company. Erste Group Bank upgraded Applied Materials from a “hold” rating to a “buy” rating in a report on Monday, April 27th. HSBC assumed coverage on Applied Materials in a research note on Friday, May 8th. They issued a “buy” rating and a $517.00 price target on the stock. Finally, Needham & Company LLC increased their price target on Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $553.56.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The company’s fifty day simple moving average is $479.64 and its two-hundred day simple moving average is $381.14. The stock has a market cap of $574.03 billion, a price-to-earnings ratio of 67.89, a P/E/G ratio of 1.74 and a beta of 1.67.

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 analysts’ consensus estimates of $2.68 by $0.18. The firm 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 business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period last year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, analysts forecast that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.3%. Applied Materials’s payout ratio is 19.91%.

Insider Activity

In other news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on 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 completion of the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the transaction, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 199,767 shares of company stock worth $114,104,709. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently bought and sold shares of the company. Financial Freedom LLC purchased a new position in Applied Materials during the first quarter worth about $28,000. Cornerstone Financial Management LLC purchased a new stake in Applied Materials in the 4th quarter valued at about $25,000. Whipplewood Advisors LLC increased its stake in Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after buying an additional 70 shares during the last quarter. Wilkerson Advisory Group LLC bought a new position in shares of Applied Materials during the 4th quarter worth approximately $26,000. Finally, MBM Wealth Consultants LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $38,000. 80.56% of the stock is 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.