Applied Materials (NASDAQ:AMAT) Trading Down 1.1% - Here's Why

Key Points

• Shares traded down 1.1% intraday to about $389.90 on Thursday with roughly 5.1 million shares changing hands, a 31% drop from average daily volume.
• Analyst upgrades and product catalysts: several firms (Stifel, Wells Fargo, Barclays, B. Riley) lifted price targets and ratings, while Applied rolled out new tools for 2nm AI/HPC chips and was contacted by Musk’s Terafab team, signaling potential incremental demand.
• Earnings and capital returns: AMAT beat quarterly estimates ($2.38 EPS vs. $2.21 consensus; $7.01B revenue vs. $6.88B) provided Q2 EPS guidance of $2.44–$2.84, and raised its quarterly dividend to $0.53 from $0.46.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) dropped 1.1% on Thursday . The stock traded as low as $384.30 and last traded at $389.90. Approximately 5,098,007 shares were traded during trading, a decline of 31% from the average daily volume of 7,425,133 shares. The stock had previously closed at $394.26.

Trending Headlines about Applied Materials

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

• Positive Sentiment: B. Riley raised its price target to $485 and reiterated a Buy, which supports upside expectations and likely helped near-term demand for the stock. B. Riley Financial Boosts Applied Materials NASDAQ: AMAT Price Target to $485.00
• Positive Sentiment: Applied rolled out two new tools aimed at 2nm AI and HPC chips (Precision Selective Nitride PECVD and Trillium ALD), reinforcing its addressable market in advanced-node equipment. Applied Materials (AMAT) Rolls Out New Tools for 2nm AI and HPC Chips
• Positive Sentiment: Bloomberg/Yahoo report that Elon Musk’s Terafab team has contacted chip-equipment suppliers including Applied, signaling a potential large new demand source if that project proceeds. Musk's staff reaches out to suppliers for Terafab project, Bloomberg News reports
• Positive Sentiment: Momentum picked up recently—AMAT was up sharply over the last week, attracting momentum investors and amplifying flows into the stock. Applied Materials (AMAT) Is Up 14.64% in One Week: What You Should Know
• Neutral Sentiment: Coverage pieces flag a growing DRAM/data-center opportunity that could lift equipment demand over time, but this is a multi-quarter/longer-term driver rather than an immediate revenue guarantee. Is Applied Materials, Inc. (AMAT) a top data center stock amid burgeoning DRAM opportunity?
• Neutral Sentiment: Positive industry signals — e.g., TSMC’s upbeat outlook — support equipment demand broadly, which is indirectly favorable for AMAT but not a company-specific catalyst. Stocks to Watch: TSMC, PepsiCo, Netflix
• Negative Sentiment: A Zacks comparison argues NVIDIA is a better buy given its data-center dominance and valuation edge, which could pull investor capital away from AMAT and pressure relative performance. NVDA vs. AMAT: Which Semiconductor Stock is a Better Buy Now?
• Negative Sentiment: ASML’s valuation premium versus U.S. equipment peers has compressed to decade lows, highlighting shifting relative valuations that could create headwinds or rotation within the equipment group. ASML valuation gap with US peers hits decade low

Wall Street Analyst Weigh In

AMAT has been the topic of several recent research reports. Stifel Nicolaus increased their price objective on Applied Materials from $340.00 to $450.00 and gave the stock a "buy" rating in a research report on Friday, February 13th. Wells Fargo & Company increased their target price on Applied Materials from $350.00 to $435.00 and gave the stock an "overweight" rating in a report on Friday, February 13th. Bank of America increased their target price on Applied Materials from $300.00 to $350.00 and gave the stock a "buy" rating in a report on Tuesday, January 13th. Sanford C. Bernstein reissued an "outperform" rating and set a $425.00 target price on shares of Applied Materials in a report on Friday, February 13th. Finally, Barclays increased their target price on Applied Materials from $360.00 to $450.00 and gave the stock an "overweight" rating in a report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $368.29.

Applied Materials Stock Performance

The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The stock has a market cap of $309.43 billion, a price-to-earnings ratio of 39.91, a P/E/G ratio of 1.76 and a beta of 1.64. The company has a 50 day simple moving average of $356.68 and a 200 day simple moving average of $292.64.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. The firm had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business's quarterly revenue was down 2.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, May 21st. This is a positive change from Applied Materials's previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a yield of 0.5%. Applied Materials's payout ratio is presently 18.83%.

Insiders Place Their Bets

In other Applied Materials news, Director Judy Bruner sold 3,969 shares of the business's stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the completion of the transaction, the director owned 28,589 shares of the company's stock, valued at approximately $10,778,624.78. The trade was a 12.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Brice Hill sold 5,000 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the transaction, the chief financial officer directly owned 138,565 shares of the company's stock, valued at approximately $50,051,063.65. The trade was a 3.48% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 12,003 shares of company stock valued at $4,484,189. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently bought and sold shares of the company. Capital Research Global Investors boosted its position in Applied Materials by 119.8% during the 4th 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. Norges Bank bought a new stake in Applied Materials during the 4th quarter worth approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Applied Materials by 617.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider's stock worth $1,869,170,000 after acquiring an additional 7,856,576 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in Applied Materials by 40.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider's stock worth $2,563,376,000 after acquiring an additional 3,583,751 shares during the last quarter. Finally, Auto Owners Insurance Co grew its holdings in Applied Materials by 25,824.4% during the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider's stock worth $86,610,000 after acquiring an additional 3,357,167 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

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.

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