Applied Materials (NASDAQ:AMAT) Stock Price Up 15% - What's Next?

Key Points

• Applied Materials shares jumped 15% to about $501.77 on sharply elevated trading volume, supported by a broader semiconductor rally and optimism over AI infrastructure spending.
• Analysts remain broadly bullish, with 27 Buy and one Strong Buy ratings; the consensus target is $599.19, while recent targets range as high as $900. However, concerns about Chinese competition, semiconductor demand durability and the stock’s elevated valuation remain risks.
• The company recently exceeded quarterly earnings and revenue estimates, reporting $2.86 in EPS and $7.91 billion in revenue, while forecasting Q3 2026 EPS of $3.16-$3.56. Applied Materials also declared a $0.53 quarterly dividend, although insiders sold $169.7 million of stock during the last quarter.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price was up 15% during mid-day trading on Thursday . The stock traded as high as $508.54 and last traded at $501.77. Approximately 12,011,086 shares changed hands during mid-day trading, an increase of 44% from the average session volume of 8,316,559 shares. The stock had previously closed at $436.45.

Applied Materials News Roundup

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

• Positive Sentiment: Strong chip-sector rally: Technology was the market’s strongest-performing sector, with semiconductor stocks among the leaders. The rebound supports demand expectations for wafer-fabrication equipment and helped lift Applied Materials. Chip Stocks Boost Tech-Led Rebound Rally at Software’s Expense
• Positive Sentiment: AI infrastructure optimism remains supportive: Bullish comments from NVIDIA CEO Jensen Huang about the scale of AI-infrastructure expansion reinforce expectations for continued semiconductor capital spending, potentially benefiting equipment suppliers such as AMAT. Can Nvidia Reclaim $5 Trillion? Jensen Huang’s Bullish AI Call Says Yes
• Neutral Sentiment: Investor attention is elevated: Applied Materials has been among the most heavily searched stocks, which may increase trading interest but does not itself indicate a change in the company’s fundamentals. Investors Heavily Search Applied Materials, Inc. (AMAT)
• Negative Sentiment: Sector risks remain: Recent semiconductor selling reflected concerns about intensifying Chinese competition and whether AI-related demand and spending can remain durable. Weakness at peer KLA, where analysts questioned growth despite upbeat guidance, also highlights valuation and equipment-demand risks for AMAT. Semiconductor Stocks Trade Down Amid Global Sell-Off

Analysts Set New Price Targets

A number of research analysts recently weighed in on AMAT shares. B. Riley Financial boosted their target price on Applied Materials from $550.00 to $790.00 and gave the stock a "buy" rating in a report on Friday, June 26th. HSBC reaffirmed a "buy" rating and set a $683.00 price objective on shares of Applied Materials in a research report on Monday. Bank of America upped their price objective on shares of Applied Materials from $540.00 to $720.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Susquehanna increased their price objective on shares of Applied Materials from $575.00 to $900.00 and gave the company a "positive" rating in a research report on Tuesday, June 30th. Finally, JPMorgan Chase & Co. raised their target price on shares of Applied Materials from $400.00 to $515.00 and gave the stock an "overweight" rating in a research note on Friday, May 15th. One investment 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 MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $599.19.

Applied Materials Price Performance

The company's fifty day moving average price is $547.86 and its 200 day moving average price is $428.02. The company has a market capitalization of $398.39 billion, a P/E ratio of 47.11, a PEG ratio of 1.21 and a beta of 1.57. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

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 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 the consensus estimate of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm's quarterly revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given 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 is Thursday, August 20th. Applied Materials's dividend payout ratio is presently 19.91%.

Insider Activity at Applied Materials

In other news, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the sale, the chief executive officer directly owned 1,599,843 shares of the company's stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total value 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 approximately $79,534,609.56. This trade represents a 6.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 in the last quarter. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Institutional investors and hedge funds have recently made changes to their positions in the company. Capital Research Global Investors lifted its stake in Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider's stock worth $8,405,458,000 after purchasing an additional 17,829,377 shares during the last quarter. Norges Bank bought a new position in shares of Applied Materials in the 4th quarter valued at $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Applied Materials by 617.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock worth $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Auto Owners Insurance Co boosted its stake in Applied Materials by 25,824.4% in the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock valued at $86,610,000 after buying an additional 3,357,167 shares in the last quarter. Finally, Coatue Management LLC boosted its stake in Applied Materials by 78.7% in the fourth quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider's stock valued at $1,537,913,000 after buying an additional 2,635,284 shares in the last quarter. 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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