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

Key Points

• Wall Street Zen downgraded Applied Materials from “Buy” to “Hold,” though broader analyst sentiment remains positive with a “Moderate Buy” consensus and an average price target of $658.45.
• Applied Materials reported better-than-expected quarterly results, including $3.50 in EPS and $9.12 billion in revenue, with revenue rising 24.8% year over year.
• The stock carries meaningful valuation and volatility risks, including a P/E ratio of 39.35 and a beta of 1.60; insiders have also sold $146.6 million of shares over the past 90 days.

Applied Materials (NASDAQ:AMAT - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities analysts also recently issued reports on the company. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $605.00 price objective on shares of Applied Materials in a report on Friday, August 14th. Argus set a $600.00 target price on shares of Applied Materials in a research report on Tuesday, August 18th. The Goldman Sachs Group reiterated a "buy" rating and issued a $645.00 price target on shares of Applied Materials in a research note on Monday, August 3rd. Seaport Research Partners reissued a "buy" rating and set a $575.00 price target on shares of Applied Materials in a research report on Friday, August 14th. Finally, UBS Group boosted their price objective on shares of Applied Materials from $675.00 to $695.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, Applied Materials presently has an average rating of "Moderate Buy" and a consensus price target of $658.45.

Applied Materials Price Performance

AMAT stock opened at $456.49 on Friday. Applied Materials has a 1 year low of $167.18 and a 1 year high of $739.67. The company has a market cap of $362.27 billion, a P/E ratio of 39.35, a PEG ratio of 1.27 and a beta of 1.60. The firm has a 50-day moving average of $513.89 and a 200 day moving average of $463.93. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same period last year, the business posted $2.48 earnings per share. Applied Materials's quarterly revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials will post 12.76 EPS for the current year.

Insider Transactions at Applied Materials

In other Applied Materials news, Director Judy Bruner sold 1,000 shares of the firm's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director directly owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Prabu Raja sold 10,000 shares of Applied Materials stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider directly owned 346,642 shares of the company's stock, valued at $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 232,692 shares of company stock valued at $146,579,059. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently made changes to their positions in the company. Brighton Jones LLC raised its stake in shares of Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in Applied Materials by 26.7% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock worth $590,000 after buying an additional 679 shares in the last quarter. Forefront Wealth Partners LLC bought a new stake in Applied Materials in the 2nd quarter worth about $410,000. Schnieders Capital Management LLC. raised its position in Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock worth $2,747,000 after buying an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. raised its position in Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock worth $77,383,000 after buying an additional 157,426 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's stock.

Key Applied Materials News

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.

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