Applied Materials (NASDAQ:AMAT) Shares Up 7% - Still a Buy?

Key Points

• Applied Materials shares jumped 7% after upbeat market sentiment, with the stock trading as high as $463.88 and finishing around $490.28 in midday action.
• Recent commentary from Jim Cramer and other coverage suggests strong demand tied to AI and semiconductor equipment spending, with remarks that Applied Materials “can’t keep up with demand” and “will just keep winning.”
• Analysts remain broadly constructive: multiple firms raised price targets to as high as $550, while the company also recently beat earnings expectations and increased its quarterly dividend from $0.46 to $0.53 per share.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shot up 7% on Tuesday . The company traded as high as $463.88 and last traded at $490.2750. 6,607,632 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 7,459,887 shares. The stock had previously closed at $458.17.

More Applied Materials News

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

• Positive Sentiment: Jim Cramer said Applied Materials “can’t keep up with demand,” reinforcing the view that the company is benefiting from strong orders tied to AI and semiconductor manufacturing. Applied Materials (AMAT) Can’t Keep Up With Demand, Says Jim Cramer
• Positive Sentiment: Another Cramer segment said he’s betting Applied Materials “will just keep winning,” which may have added to bullish sentiment around the stock. Jim Cramer Says He’s Betting “Applied Materials Will Just Keep Winning”
• Positive Sentiment: Coverage highlighting Applied Materials as a “trending stock” and discussing Wall Street’s bullish view suggests investors are still crowding into the name. Applied Materials, Inc. (AMAT) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: The company presented at the Bank of America 2026 Global Technology Conference, which likely kept investor attention on management’s outlook but did not include a clearly stated new catalyst in the summary provided. Applied Materials, Inc. (AMAT) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Articles discussing the company’s “real value” and broader AI investment themes may support long-term interest, but they do not appear to contain a fresh company-specific development. Applied Materials And Its Real Value
• Neutral Sentiment: Mentions in broader AI and semiconductor commentary, including coverage of Broadcom and related ecosystem companies, keep Applied Materials in the market’s AI spotlight but are not direct catalysts on their own. Why Broadcom (AVGO) Is Up 11.1% After New AI Data Center And Edge Network Platforms

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Citigroup raised their price target on Applied Materials from $420.00 to $520.00 and gave the stock a "buy" rating in a research note on Tuesday, May 12th. UBS Group upped their price target on Applied Materials from $480.00 to $515.00 and gave the stock a "buy" rating in a report on Friday, May 15th. 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. B. Riley Financial raised their target price on Applied Materials from $530.00 to $550.00 and gave the company a "buy" rating in a research note on Friday, May 15th. Finally, KeyCorp lifted their price target on shares of Applied Materials from $450.00 to $550.00 and gave the stock an "overweight" rating in a research note on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $470.13.

Applied Materials Trading Up 7.0%

The firm has a market cap of $389.26 billion, a P/E ratio of 46.04, a P/E/G ratio of 1.26 and a beta of 1.67. The firm has a fifty day moving average of $399.26 and a 200-day moving average of $335.80. 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 announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analysts' expectations 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 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. Equities research analysts forecast that Applied Materials, Inc. will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This is an increase from Applied Materials's previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, May 21st. Applied Materials's dividend payout ratio is 19.91%.

Insider Buying and Selling

In related news, CAO Adam Sanders sold 268 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $434.22, for a total transaction of $116,370.96. Following the transaction, the chief accounting officer owned 4,280 shares of the company's stock, valued at approximately $1,858,461.60. This trade represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Judy Bruner sold 1,128 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total transaction of $507,600.00. Following the transaction, the director directly owned 26,544 shares in the company, valued at approximately $11,944,800. The trade was a 4.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently bought and sold shares of AMAT. Brighton Jones LLC lifted its position in Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock valued at $2,061,000 after purchasing an additional 2,771 shares during the period. Sivia Capital Partners LLC increased its stake in Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock worth $590,000 after purchasing an additional 679 shares in the last quarter. Forefront Wealth Partners LLC bought a new stake in Applied Materials during the 2nd quarter worth approximately $410,000. Schnieders Capital Management LLC. increased its stake in Applied Materials by 30.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock worth $2,747,000 after purchasing an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. grew its stake in shares of Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock worth $77,383,000 after acquiring an additional 157,426 shares in the last quarter. Institutional investors and hedge funds 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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