Applied Materials (NASDAQ:AMAT) Stock Price Up 3.5% - Still a Buy?

Key Points

• Applied Materials shares rose 3.5% on Tuesday, trading between $575.39 and $614.14 as investors reacted to a mix of positive AI-related news and analyst upgrades.
• The company secured a 10-year AI packaging partnership with TSMC, reinforcing its role in advanced semiconductor manufacturing and supporting the view that AI demand could drive long-term growth.
• Wall Street remains broadly bullish: several firms raised price targets, and MarketBeat shows a consensus rating of “Moderate Buy” with a target price of $589.48, even as the stock has faced some recent chip-sector volatility.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price shot up 3.5% during trading on Tuesday . The stock traded as high as $614.14 and last traded at $595.70. Approximately 6,188,395 shares changed hands during trading, a decline of 26% from the average session volume of 8,315,610 shares. The stock had previously closed at $575.39.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials landed a 10-year AI packaging partnership with TSMC, which signals long-term demand visibility and deeper exposure to advanced AI chip manufacturing. Applied Materials (AMAT) Lands 10 Year TSMC AI Packaging Partnership
• Positive Sentiment: Bernstein initiated or reiterated a Buy rating on Applied Materials, adding another Wall Street endorsement that may support investor confidence. Applied Materials (AMAT) Gets a Buy from Bernstein
• Positive Sentiment: Analysts continue to highlight Applied Materials as a beneficiary of the AI boom, with expanding AI products and infrastructure spending expected to support revenue into the second half of 2026. The AI Boom Isn't Over: 3 Stocks to Buy for 2H 2026
• Positive Sentiment: Stifel said Applied Materials should continue benefiting from a long AI demand cycle, reinforcing the “picks-and-shovels” investment case for semiconductor equipment makers. Applied Materials: The Picks-and-Shovels Play in an AI Era Will Continue to Trend Higher
• Neutral Sentiment: Recent coverage also emphasized Applied Materials’ strong position versus peers and its role in the broader AI supply chain, but these pieces were more descriptive than market-moving. Applied Materials vs. Amkor Technology: Which Artificial Intelligence Stock Is a Better Buy in 2026?
• Negative Sentiment: Earlier reports noted Applied Materials fell more than the broader market in the prior session, reflecting some pressure on chip stocks from weakness in the sector and macro headwinds. Applied Materials (AMAT) Declines More Than Market: Some Information for Investors
• Negative Sentiment: Another market note pointed to a broader selloff in chip stocks tied to weakness in SK Hynix and an oil spike, which may have weighed on AMAT shares recently. Intel, AMD, and Applied Materials Drop 4% as SK Hynix Rout and Oil Spike Hit Chip Stocks

Analysts Set New Price Targets

A number of research firms recently commented on AMAT. Citigroup raised their price target on shares of Applied Materials from $550.00 to $710.00 and gave the stock a "buy" rating in a research report on Wednesday, June 17th. Stifel Nicolaus boosted their target price on Applied Materials from $530.00 to $650.00 and gave the company a "buy" rating in a research report on Friday. Mizuho lifted their target price on Applied Materials from $540.00 to $650.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 8th. The Goldman Sachs Group raised their price target on Applied Materials from $390.00 to $520.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Applied Materials in a research report on Wednesday, June 24th. 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 company. According to MarketBeat, Applied Materials presently has a consensus rating of "Moderate Buy" and a consensus target price of $589.48.

Applied Materials Price Performance

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 stock has a 50 day simple moving average of $521.52 and a 200-day simple moving average of $405.52. The firm has a market cap of $472.96 billion, a PE ratio of 55.93, a price-to-earnings-growth ratio of 1.53 and a beta of 1.57.

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 the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 EPS. Applied Materials'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. Equities analysts anticipate that Applied Materials, Inc. will post 12.13 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business 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 dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio (DPR) is presently 19.91%.

Insider Activity

In other Applied Materials news, CEO Gary E. Dickerson sold 20,000 shares of Applied Materials stock in a transaction on 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 sale, the chief executive officer owned 1,599,843 shares in the company, valued at $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 278,088 shares of company stock valued at $169,654,805 in the last quarter. 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. Cornerstone Financial Management LLC acquired a new stake in Applied Materials during the 4th quarter valued at approximately $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the 4th quarter valued at approximately $26,000. Financial Freedom LLC acquired a new position in shares of Applied Materials in the 1st quarter valued at about $28,000. Highline Wealth Partners LLC increased its position in Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock worth $30,000 after purchasing an additional 38 shares during the last quarter. Finally, Joseph Group Capital Management bought a new stake in Applied Materials in the fourth quarter worth $31,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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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