Applied Materials (NASDAQ:AMAT) Stock Price Up 2.6% - Here's Why

Key Points

• Applied Materials shares rose 2.6% on Friday, reaching an intraday high of $569.95 as trading volume came in above average. The move reflects strong investor interest in semiconductor equipment stocks.
• Recent analyst commentary has been broadly bullish, with Barclays reiterating an Overweight rating and multiple firms lifting price targets. Wall Street now shows a consensus Moderate Buy rating with an average target of $483.03.
• The company’s latest earnings beat expectations, posting $2.86 EPS on $7.91 billion in revenue and raising Q3 guidance. Applied Materials also announced a quarterly dividend of $0.53 per share, while insiders recently sold shares and institutional ownership remains high.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s share price rose 2.6% during trading on Friday . The company traded as high as $569.95 and last traded at $567.25. Approximately 8,026,869 shares were traded during trading, an increase of 6% from the average daily volume of 7,547,985 shares. The stock had previously closed at $552.64.

Applied Materials News Summary

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

• Positive Sentiment: Barclays reiterated an Overweight rating on Applied Materials, saying investment in new chip supply remains strong and supporting the stock’s bullish momentum. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Positive Sentiment: Erste Group Bank raised its earnings estimates for Applied Materials, lifting FY2026 EPS forecast to $12.20 and FY2027 to $16.29, while keeping a Buy rating. Applied Materials estimate revision
• Positive Sentiment: Several recent articles highlighted Applied Materials as a top momentum and AI-beneficiary stock, with commentary pointing to strong May performance, heavy hedge fund ownership, and broad analyst support. Is Applied Materials (AMAT) A Good Stock to Buy Now?
• Positive Sentiment: Investor attention is also being fueled by a recent 52-week-high move and reports of continued rotation into chip equipment stocks, reinforcing the view that AMAT remains a favored AI infrastructure name. Why Did AMAT, AMPG, OSCR Stocks Surge To 52-Week Highs Today?
• Neutral Sentiment: Other coverage today was largely repeated “great momentum stock” and “attracting investor attention” pieces, reflecting strong market interest rather than a new company-specific catalyst. Applied Materials (AMAT) is a Great Momentum Stock: Should You Buy?

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. DZ Bank upgraded Applied Materials to a "hold" rating in a research report on Monday, February 16th. Raymond James Financial set a $650.00 target price on shares of Applied Materials in a report on Wednesday. The Goldman Sachs Group raised their price target on shares of Applied Materials from $390.00 to $520.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Mizuho increased their price objective on shares of Applied Materials from $500.00 to $540.00 and gave the company an "outperform" rating in a report on Wednesday, May 27th. Finally, HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They issued a "buy" rating and a $517.00 target price on the stock. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $483.03.

Applied Materials Stock Up 2.6%

The firm's fifty day simple moving average is $422.95 and its two-hundred day simple moving average is $351.11. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $450.37 billion, a price-to-earnings ratio of 53.26, a price-to-earnings-growth ratio of 1.39 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 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 firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the previous year, the company earned $2.39 EPS. The business's revenue for the quarter 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. Sell-side analysts anticipate that Applied Materials, Inc. will post 12.02 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend 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 19.91%.

Insiders Place Their Bets

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the company's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the transaction, the insider owned 356,642 shares of the company's stock, valued at $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Brice Hill sold 2,500 shares of Applied Materials stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $498.86, for a total transaction of $1,247,150.00. Following the sale, the chief financial officer owned 136,113 shares of the company's stock, valued at approximately $67,901,331.18. This represents a 1.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 53,896 shares of company stock valued at $27,135,121. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. Cornerstone Financial Management LLC acquired a new stake in shares of Applied Materials in the fourth quarter valued at $25,000. Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials in the third quarter valued at approximately $26,000. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the fourth quarter valued at approximately $26,000. Financial Freedom LLC purchased a new stake in Applied Materials during the 1st quarter worth approximately $28,000. Finally, Highline Wealth Partners LLC lifted its holdings in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after buying an additional 38 shares in the last quarter. 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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