Applied Materials, Inc. (NASDAQ:AMAT) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Thirty-four analysts give Applied Materials a consensus rating of Moderate Buy (26 Buy, 7 Hold, 1 Strong Buy) with an average 12‑month price target of $367.04.
• Applied beat Q1 estimates—EPS $2.38 vs. $2.21 and revenue $7.01B vs. $6.88B—set Q2 guidance of $2.44–$2.84 EPS, and the stock trades at a $315.7B market cap with a P/E of 40.7 and a 52‑week range of $132.80–$398.74.
• Management launched new deposition systems for the "angstrom era" (2nm/GAA) targeting AI chips, spurring analyst price‑target raises (several to $450 and Susquehanna to $500) and contributing to a recent rally.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the thirty-four brokerages that are currently covering the company, MarketBeat.com reports. Seven research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $367.0357.

Several analysts have weighed in on AMAT shares. DZ Bank upgraded shares of Applied Materials to a "hold" rating in a research note on Monday, February 16th. B. Riley Financial reiterated a "buy" rating and issued a $450.00 price objective (up from $400.00) on shares of Applied Materials in a research note on Friday, February 13th. TD Cowen lifted their price objective on shares of Applied Materials from $315.00 to $450.00 and gave the stock a "buy" rating in a research note on Friday, February 13th. Zacks Research upgraded shares of Applied Materials from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 17th. Finally, KeyCorp lifted their price objective on shares of Applied Materials from $380.00 to $450.00 and gave the stock an "overweight" rating in a research note on Friday, February 13th.

Applied Materials Stock Performance

NASDAQ AMAT opened at $397.81 on Friday. The firm has a 50-day moving average of $350.32 and a 200-day moving average of $286.59. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The stock has a market cap of $315.71 billion, a PE ratio of 40.72, a P/E/G ratio of 1.72 and a beta of 1.64. Applied Materials has a 52-week low of $132.80 and a 52-week high of $398.74.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.21 by $0.17. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The company had revenue of $7.01 billion during the quarter, compared to analysts' expectations of $6.88 billion. During the same quarter last year, the company posted $2.38 EPS. Applied Materials's quarterly revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, sell-side analysts anticipate that Applied Materials will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a $0.53 dividend. This is a positive change from Applied Materials's previous quarterly dividend of $0.46. The ex-dividend date is Thursday, May 21st. This represents a $2.12 annualized dividend and a yield of 0.5%. Applied Materials's dividend payout ratio is presently 18.83%.

More Applied Materials News

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

• Positive Sentiment: Applied unveiled new deposition systems aimed at the "angstrom era" (2nm/GAA) that are already being used by leading foundry/logic customers — a direct revenue catalyst because these tools address demand for advanced AI chips and node transitions. Applied Materials Introduces Deposition Systems for Angstrom‑Era Logic Chips
• Positive Sentiment: Coverage and headlines across financial sites report the new tools as a major product win, helping the stock rally as investors anticipate larger orders and aftermarket revenue. Applied Materials (AMAT) Is Up 9.0% After Launching 2nm GAA Deposition Tools For AI Chips
• Positive Sentiment: Analyst bullishness: Susquehanna raised its price target to $500 and kept a "positive" rating, providing a large upside signal that supports momentum buying. Benzinga
• Positive Sentiment: Goldman Sachs included AMAT among top semiconductor picks, adding institutional credibility to the buy case amid improving valuations in the sector. Goldman Sachs Names Teradyne (TER), Applied Materials (AMAT), AMD (AMD) as Top Semiconductor Picks
• Positive Sentiment: Independent commentary frames recent memory/semiconductor selloffs (Micron, WDC, AMAT) as a buying opportunity driven by strong AI demand — a sentiment that can attract value/momentum buyers. Memory Wipe: The Great TurboQuant Miscalculation (AMAT)
• Neutral Sentiment: Macro and market context: easing geopolitical tensions and positive market breadth are supporting semiconductor names broadly, which helps AMAT alongside company‑specific news. Dow Jones Futures Fall, Oil Prices Rise After Iran Ceasefire Rally...
• Neutral Sentiment: Valuation/watchers: some writeups question whether the recent run (strong YTD and 1‑year performance) leaves less margin for error — keep an eye on execution and order flow to validate the rally. Is It Too Late To Consider Applied Materials (AMAT) After 177% One Year Surge?

Insider Activity

In other news, Director Judy Bruner sold 3,969 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the transaction, the director directly owned 28,589 shares in the company, valued at approximately $10,778,624.78. The trade was a 12.19% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 534 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the transaction, the chief accounting officer owned 4,625 shares of the company's stock, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 12,003 shares of company stock worth $4,484,189. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Old North State Trust LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $240,000. Forty three Eighteen Advisors LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $2,533,000. Fund Advisors of America Inc FL acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $316,000. World Investment Advisors raised its position in shares of Applied Materials by 4.5% in the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock valued at $21,149,000 after buying an additional 3,508 shares in the last quarter. Finally, Meadowbrook Advisors Group LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $562,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.

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