Applied Materials (NASDAQ:AMAT) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Applied Materials to “buy” from “hold.” The stock has a “Moderate Buy” consensus rating, with analysts’ average price target at $640.17.
• Applied Materials reported quarterly revenue of $9.12 billion and EPS of $3.50, beating estimates, while revenue increased 24.8% year over year. Management also issued above-consensus fiscal fourth-quarter guidance.
• Despite strong results and analyst support, shares faced pressure as investors sought faster growth and clearer competitive advantages; concerns over margins, competition and broader semiconductor-sector weakness weighed on the stock.

Applied Materials (NASDAQ:AMAT - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other brokerages have also weighed in on AMAT. Royal Bank Of Canada raised their price objective on Applied Materials from $520.00 to $600.00 and gave the company an "outperform" rating in a research report on Friday. Seaport Research Partners reiterated a "buy" rating and issued a $575.00 target price on shares of Applied Materials in a research report on Friday. Bank of America dropped their price target on Applied Materials from $720.00 to $650.00 and set a "buy" rating for the company in a research note on Friday. HC Wainwright set a $850.00 price target on Applied Materials in a report on Monday, June 29th. Finally, Jefferies Financial Group lifted their price objective on Applied Materials from $510.00 to $770.00 and gave the stock a "buy" rating in a research note on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Applied Materials has an average rating of "Moderate Buy" and an average price target of $640.17.

Applied Materials Stock Performance

NASDAQ AMAT opened at $507.18 on Friday. The firm has a market cap of $402.68 billion, a price-to-earnings ratio of 43.72, a price-to-earnings-growth ratio of 1.35 and a beta of 1.61. 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 business has a 50-day moving average price of $564.15 and a 200-day moving average price of $444.89. Applied Materials has a twelve month low of $154.46 and a twelve month high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 39.58% and a net margin of 30.05%.The firm's quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts predict that Applied Materials will post 12.22 EPS for the current fiscal year.

Insider Transactions at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares of the company's stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently made changes to their positions in AMAT. BlackRock Inc. raised its position in Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider's stock worth $57,993,650,000 after purchasing an additional 1,237,685 shares during the period. Vanguard Group Inc. grew its stake in shares of Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider's stock valued at $19,731,523,000 after buying an additional 330,197 shares during the last quarter. Capital Research Global Investors raised its holdings in shares of Applied Materials by 119.8% in 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 buying an additional 17,829,377 shares during the period. Morgan Stanley raised its holdings in shares of Applied Materials by 3.4% in the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider's stock worth $2,947,891,000 after buying an additional 373,012 shares during the period. Finally, Norges Bank bought a new stake in shares of Applied Materials during the 4th quarter worth approximately $2,858,543,000. Institutional investors own 80.56% of the company's stock.

Applied Materials News Roundup

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

• Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates
• Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks
• Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data
• Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth
• Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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