Applied Materials (NASDAQ:AMAT) Trading 11.2% Higher - Should You Buy?

Key Points

• Applied Materials (AMAT) shares jumped 11.2% on the day, with trading volume well above average, as investors reacted to a wave of bullish news and analyst upgrades.
• Barclays reiterated an Overweight rating and several analysts raised price targets, reflecting growing confidence that AI-driven chip-equipment spending will continue to support demand.
• The company is expanding capacity with a $500 million Singapore project to meet rising AI-chip manufacturing demand, while its latest earnings beat expectations and showed strong year-over-year revenue growth.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) shares were up 11.2% on Thursday . The stock traded as high as $557.62 and last traded at $552.64. Approximately 12,194,860 shares traded hands during trading, an increase of 62% from the average daily volume of 7,543,388 shares. The stock had previously closed at $497.01.

More Applied Materials News

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

• Positive Sentiment: Barclays reiterated an Overweight rating on Applied Materials and raised its outlook on chip-equipment demand, boosting confidence that AI-related capital spending will keep supporting the company’s growth. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Positive Sentiment: Multiple analysts lifted price targets, including new Street-high expectations, reinforcing the view that AMAT still has upside after its strong run. Applied Materials Stock (AMAT) Scores a New Street-High Price Target from a Top Wall Street Analyst
• Positive Sentiment: Applied Materials highlighted its new $500 million Singapore expansion, which more than doubles advanced cleanroom capacity and is aimed at meeting rising AI-chip manufacturing demand. Applied Materials Expands Singapore Manufacturing to Support AI Chip Demand
• Positive Sentiment: Recent commentary pointed to record margins, improving revenue visibility, and a higher equipment-market outlook, suggesting the company may be entering a stronger growth phase. How Record Margins, AI Demand Visibility and Singapore Expansion At Applied Materials (AMAT) Has Changed Its Investment Story
• Neutral Sentiment: The company also announced a quarterly dividend, which is supportive for shareholders but not a major near-term growth catalyst. Applied Materials Expands Singapore Manufacturing to Support AI Chip Demand

Analysts Set New Price Targets

Several research firms have recently weighed in on AMAT. Zacks Research downgraded shares of Applied Materials from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Applied Materials in a research report on Friday, March 27th. Raymond James Financial set a $650.00 target price on Applied Materials in a research report on Wednesday. Jefferies Financial Group raised their target price on Applied Materials from $415.00 to $510.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, UBS Group raised their target price on Applied Materials from $515.00 to $570.00 and gave the stock a "buy" rating in a research report on Wednesday. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $483.03.

Applied Materials Stock Up 11.2%

The firm has a market cap of $438.77 billion, a P/E ratio of 51.89, a P/E/G ratio of 1.40 and a beta of 1.67. The business's fifty day moving average price is $418.73 and its two-hundred day moving average price is $348.79. The company has a current ratio of 2.51, a quick ratio of 1.80 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 business had revenue of $7.91 billion for 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%. Applied Materials's revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter last year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts anticipate that Applied Materials, Inc. will post 12.02 EPS for the current year.

Applied Materials Announces Dividend

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

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 1,128 shares of the firm's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total transaction of $507,600.00. Following the transaction, the director owned 26,544 shares in the company, valued at approximately $11,944,800. This trade represents a 4.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 2,500 shares of the firm's stock in a transaction on 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 transaction, the chief financial officer owned 136,113 shares in the company, valued at $67,901,331.18. This represents a 1.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 53,896 shares of company stock worth $27,135,121 over the last quarter. Company insiders own 0.30% of the company's stock.

Institutional Trading of Applied Materials

Several large investors have recently modified their holdings of AMAT. Brighton Jones LLC boosted its holdings in shares of Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after buying an additional 2,771 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock worth $590,000 after buying an additional 679 shares during the period. Forefront Wealth Partners LLC bought a new stake in shares of Applied Materials during the 2nd quarter worth $410,000. Schnieders Capital Management LLC. increased its position in Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock worth $2,747,000 after acquiring an additional 3,469 shares during the period. Finally, Sei Investments Co. increased its position in Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock worth $77,383,000 after acquiring an additional 157,426 shares during the period. 80.56% of the stock is owned by 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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