Applied Materials (NASDAQ:AMAT) Stock Price Up 4.1% - Here's Why

Key Points

• Applied Materials shares rose 4.1% on Tuesday amid heavy trading volume, with the stock reaching as high as $739.67 before ending at $723.00.
• Wall Street analysts have turned more bullish, citing AI infrastructure spending and stronger near-term fundamentals. Several firms raised price targets, and the stock now carries a consensus Moderate Buy rating.
• The company also posted solid recent results, beating earnings and revenue estimates, while its Q3 guidance and dividend announcement added to investor optimism. However, some traders warn the stock may be overbought after its sharp run-up.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) were up 4.1% during trading on Tuesday . The stock traded as high as $739.67 and last traded at $723.00. Approximately 15,945,656 shares traded hands during mid-day trading, an increase of 95% from the average daily volume of 8,164,900 shares. The stock had previously closed at $694.64.

More Applied Materials News

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

• Positive Sentiment: KeyBanc and other Wall Street firms raised their outlooks on Applied Materials ahead of earnings, citing upside tied to AI infrastructure spending and improved near-term fundamentals.
• Positive Sentiment: Erste Group lifted its FY2026 and FY2027 earnings estimates for Applied Materials and reiterated a Buy rating, signaling confidence that earnings momentum can continue.
• Positive Sentiment: The stock has had a historic run, including its best monthly rally since 1975, as analysts boosted price targets and investors rotated into semiconductor equipment names benefiting from the AI buildout.
• Positive Sentiment: Applied Materials was also added to the Russell Top 50 index, which can increase institutional visibility and support demand from index-linked funds.
• Neutral Sentiment: Recent commentary comparing AMAT with ASML and peer chip-equipment stocks has highlighted Applied Materials as a strong beneficiary of the AI capex cycle, but also raised valuation questions after the sharp move higher.
• Negative Sentiment: Some traders and analysts are warning that the stock is now extremely overbought, and any earnings disappointment could trigger a pullback after the rapid run-up.

Analyst Upgrades and Downgrades

AMAT has been the topic of several analyst reports. Wells Fargo & Company increased their price target on shares of Applied Materials from $715.00 to $740.00 and gave the stock an "overweight" rating in a research report on Friday. Stifel Nicolaus set a $530.00 target price on Applied Materials in a report on Friday, May 15th. Barclays lifted their price target on Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a research note on Thursday, June 11th. Seaport Research Partners assumed coverage on Applied Materials in a research report on Monday, May 4th. They set a "buy" rating and a $500.00 price objective for the company. Finally, HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $553.56.

Applied Materials Stock Up 4.1%

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 $574.03 billion, a P/E ratio of 67.89, a PEG ratio of 1.74 and a beta of 1.67. The stock has a 50 day moving average price of $479.64 and a 200 day moving average price of $381.14.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion during 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 business's revenue for the quarter was up 11.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, research analysts anticipate that Applied Materials, Inc. will post 12.1 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.3%. Applied Materials's dividend payout ratio (DPR) is currently 19.91%.

Insider Transactions at Applied Materials

In other news, insider Prabu G. Raja sold 50,000 shares of the firm's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the transaction, the insider owned 356,642 shares of the company's stock, valued at approximately $180,204,069.76. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gary E. Dickerson sold 71,727 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 199,767 shares of company stock worth $114,104,709. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently made changes to their positions in AMAT. VectorGlobal IAG Inc. bought a new position in Applied Materials during the 1st quarter worth approximately $1,644,000. Basecamp Wealth Advisors LLC boosted its stake in shares of Applied Materials by 0.7% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock valued at $1,124,000 after purchasing an additional 22 shares during the last quarter. Sapient Capital LLC acquired a new stake in shares of Applied Materials during the first quarter worth $217,000. Western Wealth Management LLC increased its position in shares of Applied Materials by 16.1% during the first quarter. Western Wealth Management LLC now owns 4,829 shares of the manufacturing equipment provider's stock worth $1,650,000 after buying an additional 669 shares during the period. Finally, Militia Capital Management LLC bought a new position in Applied Materials during the first quarter worth $295,000. Institutional investors and hedge funds own 80.56% of the company's stock.

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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