Applied Materials (NASDAQ:AMAT) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Applied Materials from “hold” to “strong-buy,” adding to a broadly bullish analyst backdrop. The stock now carries an average rating of “Moderate Buy” with a consensus price target of $553.56.
• Applied Materials reported better-than-expected fiscal Q2 results, with EPS of $2.86 versus estimates of $2.68 and revenue of $7.91 billion versus $7.68 billion expected. Revenue rose 11.4% year over year, and the company issued Q3 guidance of $3.16 to $3.56 EPS.
• The stock has also been supported by AI-related optimism, as investors view Applied Materials as a beneficiary of semiconductor spending tied to DRAM and advanced packaging. However, recent insider stock sales, including by senior executives, may weigh on sentiment despite strong institutional ownership.

Applied Materials (NASDAQ:AMAT - Get Free Report) was upgraded by analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports.

Other research analysts have also issued research reports about the stock. JPMorgan Chase & Co. increased their target price on shares of Applied Materials from $400.00 to $515.00 and gave the stock an "overweight" rating in a research note on Friday, May 15th. Erste Group Bank raised shares of Applied Materials from a "hold" rating to a "buy" rating in a research note on Monday, April 27th. Wolfe Research increased their price objective 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. HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday. Finally, Deutsche Bank Aktiengesellschaft raised their price target on Applied Materials from $450.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $553.56.

Applied Materials Stock Performance

Shares of AMAT opened at $603.04 on Wednesday. Applied Materials has a 12 month low of $154.46 and a 12 month high of $739.67. The stock has a fifty day moving average price of $495.52 and a 200-day moving average price of $389.39. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The firm has a market cap of $478.79 billion, a PE ratio of 56.62, a P/E/G ratio of 1.81 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its 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. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm's quarterly revenue was up 11.4% compared to the same quarter last year. During the same period in the prior year, the company posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts predict that Applied Materials will post 12.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the senior vice president directly owned 146,916 shares of the company's stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $633.53, for a total value of $6,335,300.00. Following the transaction, the insider directly owned 346,642 shares of the company's stock, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AMAT. Basecamp Wealth Advisors LLC lifted its holdings in Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock worth $1,124,000 after buying an additional 22 shares during the last quarter. Private Wealth Management Group LLC raised its position in shares of Applied Materials by 4.9% during the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider's stock valued at $181,000 after acquiring an additional 25 shares in the last quarter. One Day In July LLC raised its position in shares of Applied Materials by 2.4% during the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider's stock valued at $372,000 after acquiring an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. lifted its stake 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 purchasing an additional 27 shares during the last quarter. Finally, Horst & Graben Wealth Management LLC boosted its holdings in Applied Materials by 2.1% in the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider's stock worth $446,000 after purchasing an additional 27 shares during the period. Institutional investors and hedge funds 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: Applied Materials is being highlighted as a key beneficiary of AI infrastructure spending, with coverage emphasizing its role in DRAM and advanced packaging innovations that support next-generation semiconductor growth. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Investor sentiment was also supported by a Zacks list naming AMAT among the day’s top momentum stocks, reinforcing bullish technical momentum. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Market commentary continues to frame Applied Materials as a behind-the-scenes winner from the AI boom, which could help justify its elevated valuation if chip demand stays strong. Applied Materials Is Silently Powering the AI Boom. Here's Why.
• Neutral Sentiment: Broader semiconductor stocks sold off as investors took profits after a strong first half, suggesting some of AMAT’s weakness may be sector-driven rather than company-specific. Why Applied Materials (AMAT) Shares Are Falling Today
• Neutral Sentiment: Another report noted AMAT fell more than the overall market in the latest session, but the move was tied to chip-sector weakness rather than a new earnings miss or guidance cut. Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: CEO Gary Dickerson disclosed two sizable stock sales, including 20,000 shares sold at $735.22, which can weigh on investor sentiment even though he still retains a very large position. Applied Materials NASDAQ: AMAT CEO Sells $14,704,400.00 in Stock

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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