Applied Materials (NASDAQ:AMAT) Sets New 52-Week High - Still a Buy?

Key Points

• Applied Materials hit a new 52-week high, trading as high as $674.99 and last changing hands near $689.68, reflecting strong recent momentum in the stock.
• Analyst sentiment remains broadly bullish, with several firms raising price targets, including KeyBanc at $750, Bank of America at $720, and Wells Fargo at $740; the consensus rating is still Moderate Buy.
• The company continues to show solid fundamentals, reporting Q2 earnings and revenue above estimates and issuing Q3 guidance of $3.16 to $3.56 EPS, while also launching new chipmaking systems tied to AI and advanced 3D architectures.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $674.99 and last traded at $689.68, with a volume of 4043364 shares traded. The stock had previously closed at $626.84.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: KeyBanc lifted its price target to $750, citing further upside ahead of Q3 earnings and reinforcing bullish sentiment on AMAT. Applied Materials (AMAT) Stock Surges 12% on KeyBanc Price Target Upgrade
• Positive Sentiment: Bank of America raised its price target on Applied Materials to $720, while Wells Fargo increased its target to $740 and kept an Overweight rating, adding to the bullish analyst backdrop. Bank of America Just Gave Applied Materials Stock a New Street-High Price Target
• Positive Sentiment: Applied Materials introduced new chipmaking systems aimed at advanced 3D chip architectures for next-generation AI, supporting the company’s growth story in high-demand semiconductor equipment. Applied Materials (AMAT) Introduces Suite of New Chipmaking Systems
• Positive Sentiment: AMAT was added to the Russell Top 50 Index, a move that could increase passive fund ownership and visibility among investors. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes
• Neutral Sentiment: Some commentary notes that high expectations are already embedded in AMAT’s valuation, so even a small earnings or guidance miss could spark short-term volatility. This Analyst Sees 20% Upside For AMAT Stock – Says High Expectations Around Applied Materials’ Businesses Create Short-Term Risk
• Neutral Sentiment: One article argues that the company’s equipment-market surge may already be priced into the stock, suggesting upside could be more limited if expectations remain elevated. Applied Materials: Equipment Market Surge Priced Into Stock Price

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on AMAT. Zacks Research lowered Applied Materials from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 27th. TD Cowen boosted their price target on Applied Materials from $450.00 to $525.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Erste Group Bank upgraded Applied Materials from a "hold" rating to a "buy" rating in a research note on Monday, April 27th. Jefferies Financial Group increased their price target on Applied Materials from $510.00 to $770.00 and gave the company a "buy" rating in a report on Friday. Finally, Stifel Nicolaus set a $530.00 price objective on Applied Materials in a report on Friday, May 15th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $541.06.

Applied Materials Stock Performance

The company has a fifty day moving average of $473.54 and a two-hundred day moving average of $378.12. The stock has a market capitalization of $553.49 billion, a P/E ratio of 65.45, a price-to-earnings-growth ratio of 1.74 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials's quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the business posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts anticipate that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently announced 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 annualized dividend and a yield of 0.3%. Applied Materials's payout ratio is presently 19.91%.

Insider Activity at Applied Materials

In other news, insider Prabu G. Raja sold 10,000 shares of the firm's stock in a transaction dated Thursday, June 18th. The shares were 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 in the company, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president directly owned 134,631 shares of the company's stock, valued at $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 199,767 shares of company stock valued at $114,104,709 in the last ninety days. 0.30% of the stock is owned by insiders.

Institutional Trading of Applied Materials

Institutional investors and hedge funds have recently made changes to their positions in the stock. Basecamp Wealth Advisors LLC lifted its holdings in shares of Applied Materials by 0.7% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock worth $1,124,000 after purchasing an additional 22 shares during the last quarter. Sapient Capital LLC acquired a new position in shares of Applied Materials during the first quarter valued at $217,000. Western Wealth Management LLC boosted its holdings in shares of Applied Materials by 16.1% during the first quarter. Western Wealth Management LLC now owns 4,829 shares of the manufacturing equipment provider's stock valued at $1,650,000 after acquiring an additional 669 shares during the period. Militia Capital Management LLC bought a new position in shares of Applied Materials during the first quarter worth about $295,000. Finally, Pine Valley Investments Ltd Liability Co increased its holdings in shares of Applied Materials by 10.9% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 29,297 shares of the manufacturing equipment provider's stock worth $10,013,000 after acquiring an additional 2,890 shares during the period. 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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