Applied Materials (NASDAQ:AMAT) Shares Up 1.2% - Here's What Happened

Key Points

• Applied Materials shares rose 1.2% to $507.67 in mid-day trading, supported by a broader rally in semiconductor stocks and strong investor flows into chip-focused ETFs.
• The company reported quarterly earnings and revenue above analyst expectations, with revenue up 11.4% year over year, while AI-driven semiconductor demand, expanding margins and improved customer visibility continue to support the growth outlook.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and an average price target of $599.19; however, some caution that the stock’s elevated valuation after a 218.9% five-year gain could limit upside if AI spending slows.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price traded up 1.2% during mid-day trading on Friday . The stock traded as high as $536.54 and last traded at $507.67. Approximately 7,372,347 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 8,299,655 shares. The stock had previously closed at $501.77.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I'm Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock's Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

Analyst Ratings Changes

AMAT has been the topic of a number of recent research reports. HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday, June 29th. Wolfe Research lifted their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research note on Friday, May 15th. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a report on Wednesday, June 10th. Barclays increased their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a research note on Thursday, June 11th. Finally, Argus raised their target price on shares of Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $599.19.

Applied Materials Stock Performance

The firm's 50 day moving average is $549.35 and its 200-day moving average is $429.43. The stock has a market capitalization of $403.07 billion, a price-to-earnings ratio of 47.67, a PEG ratio of 1.11 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT - Get Free Report) 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 company had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts forecast that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials's dividend payout ratio is presently 19.91%.

Insider Activity at Applied Materials

In other Applied Materials news, Director Thomas J. Iannotti sold 9,250 shares of the firm's 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 sale, the director directly owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the business'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 sale, the senior vice president owned 146,916 shares of the company's stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 278,088 shares of company stock valued at $169,654,805 in the last ninety days. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMAT. JFS Wealth Advisors LLC boosted its stake in shares of Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after acquiring an additional 17 shares in the last quarter. Stonebridge Financial Group LLC raised its stake in shares of Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock valued at $725,000 after acquiring an additional 21 shares in the last quarter. Basecamp Wealth Advisors LLC raised its stake 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 valued at $1,124,000 after acquiring an additional 22 shares in the last quarter. Financial Management Professionals Inc. lifted its holdings in Applied Materials by 2.2% in the 2nd quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider's stock worth $752,000 after purchasing an additional 22 shares during the last quarter. Finally, Elevation Wealth Partners LLC lifted its holdings in Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock worth $67,000 after purchasing an additional 24 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company's 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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