Applied Materials (NASDAQ:AMAT) Shares Up 7.4% - Here's Why

Key Points

• Applied Materials shares jumped 7.4% on Tuesday, with the stock trading as high as $572.50 after closing at $525.70, reflecting a strong rebound in investor sentiment.
• Recent AI and semiconductor demand news helped support the stock, including AMAT joining CuspAI’s AI Materials Foundry and analysts citing the company as a beneficiary of continued investment in advanced chips.
• Wall Street remains bullish on AMAT, with multiple firms raising price targets and the consensus rating sitting at “Moderate Buy” with an average target price of $593.84.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded up 7.4% during trading on Tuesday . The company traded as high as $572.50 and last traded at $564.55. 7,601,130 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 8,309,979 shares. The stock had previously closed at $525.70.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials joined CuspAI’s new AI Materials Foundry as a founding member, a move aimed at speeding semiconductor materials discovery and addressing chipmaking bottlenecks with AI-driven research. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery
• Positive Sentiment: Analysts highlighted AMAT as a beneficiary of growing AI demand, saying semiconductor equipment makers like Applied Materials can benefit from sustained investment in advanced chips. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Positive Sentiment: Applied Materials’ installed-base services business is showing recurring-revenue strength, with Applied Global Services revenue rising to $1.665 billion from $1.42 billion a year earlier as fab utilization improves. Is AMAT's Installed Base Business Built for Long-Term Growth?
• Neutral Sentiment: Wall Street commentary remained broadly constructive on AMAT, with the article focusing on whether current analyst sentiment supports the stock. Should You Invest in Applied Materials (AMAT) Based on Bullish Wall Street Views?
• Negative Sentiment: Seasonality models flagged a bearish window for AMAT heading into July 23, which could temper near-term momentum. Three Stocks Just Flashed Seasonal Signals
• Negative Sentiment: AMAT also saw a modest prior-session pullback, with shares slipping as part of a broader market dip before today’s rebound. Applied Materials (AMAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Wall Street Analysts Forecast Growth

Several research firms have recently commented on AMAT. Wolfe Research increased their price target on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research report on Friday, May 15th. Weiss Ratings restated a "buy (b-)" rating on shares of Applied Materials in a research report on Wednesday, June 24th. Barclays upped their target price on Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a research note on Thursday, June 11th. Deutsche Bank Aktiengesellschaft increased their target price on Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a report on Friday, May 15th. Finally, Bank of America raised their price target on Applied Materials from $540.00 to $720.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $593.84.

Applied Materials Trading Up 7.4%

The business's fifty day moving average price is $534.76 and its 200 day moving average price is $415.98. 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 firm has a market capitalization of $448.23 billion, a PE ratio of 53.01, a P/E/G ratio of 1.35 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings data 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. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 earnings per share. The company's quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts expect that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared 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. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio is currently 19.91%.

Insider Buying and Selling at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Gary E. Dickerson sold 20,000 shares of the firm's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the sale, the chief executive officer directly owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of AMAT. Evolve Private Wealth LLC boosted its holdings in Applied Materials by 59.0% during the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider's stock worth $983,000 after buying an additional 1,067 shares in the last quarter. Worth Asset Management LLC bought a new position in shares of Applied Materials in the fourth quarter valued at $1,531,000. World Investment Advisors increased its holdings in shares of Applied Materials by 4.5% in the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider's stock valued at $21,149,000 after buying an additional 3,508 shares in the last quarter. WealthPlan Investment Management LLC acquired a new stake in shares of Applied Materials during the 4th quarter valued at $1,082,000. Finally, Baker Chad R lifted its position in shares of Applied Materials by 76.6% during the 4th quarter. Baker Chad R now owns 16,530 shares of the manufacturing equipment provider's stock valued at $4,297,000 after acquiring an additional 7,170 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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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