Applied Materials (NASDAQ:AMAT) Shares Up 3.3% - What's Next?

Key Points

• Applied Materials shares rose 3.3% in Monday trading, with volume running well above average as the stock hit an intraday high of $599.62 before settling at $585.78.
• The company got a boost from positive product and analyst news, including a new deposition and selective etch system launch for advanced AI chip manufacturing and Barclays raising its price target to $590 while keeping an Overweight rating.
• Recent fundamentals also support the stock: Applied Materials beat quarterly EPS and revenue estimates, and it issued Q3 2026 guidance of $3.16 to $3.56 EPS, though some commentary suggests the shares may be getting extended after the rally.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shot up 3.3% during mid-day trading on Monday . The stock traded as high as $599.62 and last traded at $585.78. 11,616,960 shares were traded during trading, an increase of 53% from the average session volume of 7,586,380 shares. The stock had previously closed at $567.25.

More Applied Materials News

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

• Positive Sentiment: Applied Materials unveiled new deposition and selective etch systems aimed at improving 3D chip scaling, a product launch tied directly to next-generation AI chip manufacturing. Applied Materials Unveils Deposition and Selective Etch Systems to Advance 3D Chip Scaling
• Positive Sentiment: Barclays raised its price target on AMAT to $590 from $500 and reiterated an Overweight rating, signaling rising analyst confidence in wafer-fab spending and demand trends. Applied Materials (AMAT) Gets Higher Price Targets from Barclays and Cantor Fitzgerald
• Positive Sentiment: Commentary from Jim Cramer highlighted AMAT favorably as a semiconductor name he would “go for,” adding a visibility boost to the stock among retail investors. Jim Cramer Says “I’ll Go for AMAT”
• Neutral Sentiment: Broader semiconductor ETF trading remains strong, suggesting the group is attracting heavy market interest and supporting momentum in chip-equipment stocks. Semiconductor ETFs Now Dominate the Most‑Traded List — A Signal You Can't Ignore
• Neutral Sentiment: Articles discussing AMAT’s recent surge and valuation frame the stock as extended, which may temper enthusiasm for new buyers even as momentum stays strong. Buy, Hold, or Sell: Applied Materials Surged Right Back Toward $500 Following a Brutal June Flush. Here’s Where I’d Buy

Analyst Ratings Changes

Several brokerages have issued reports on AMAT. Mizuho raised their price objective on Applied Materials from $500.00 to $540.00 and gave the stock an "outperform" rating in a report on Wednesday, May 27th. Barclays raised their price objective on Applied Materials from $500.00 to $590.00 and gave the stock an "overweight" rating in a report on Thursday. Seaport Research Partners assumed coverage on Applied Materials in a report on Monday, May 4th. They set a "buy" rating and a $500.00 price target on the stock. Sanford C. Bernstein reissued an "outperform" rating and set a $525.00 price target on shares of Applied Materials in a report on Friday, May 15th. Finally, TD Cowen raised their price target on Applied Materials from $450.00 to $525.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $483.03.

Applied Materials Stock Performance

The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a fifty day moving average of $427.22 and a 200-day moving average of $353.48. The stock has a market cap of $465.09 billion, a PE ratio of 55.00, a price-to-earnings-growth ratio of 1.58 and a beta of 1.67.

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

Applied Materials Dividend Announcement

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

Insiders Place Their Bets

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the sale, the insider owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Judy Bruner sold 1,128 shares of Applied Materials stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the completion of the sale, the director directly owned 26,544 shares in the company, valued at $11,944,800. This represents a 4.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 53,896 shares of company stock worth $27,135,121 over the last quarter. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in shares of Applied Materials by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock valued at $19,731,523,000 after acquiring an additional 330,197 shares during the period. Capital Research Global Investors lifted its position in shares of Applied Materials by 119.8% during the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock valued at $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Ameriprise Financial Inc. lifted its position in shares of Applied Materials by 40.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock valued at $2,563,376,000 after acquiring an additional 3,583,751 shares during the period. Morgan Stanley lifted its position in shares of Applied Materials by 3.4% during the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock valued at $2,947,891,000 after acquiring an additional 373,012 shares during the period. Finally, Norges Bank acquired a new stake in shares of Applied Materials during the 4th quarter valued at approximately $2,858,543,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

About Applied Materials

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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