Applied Materials (NASDAQ:AMAT) Trading Up 2.1% - Here's Why

Key Points

• Applied Materials shares rose 2.1% to $518.21 in midday trading, with 5.95 million shares changing hands.
• The company’s latest results surpassed expectations, with EPS of $2.86 versus $2.68 expected and revenue of $7.91 billion versus $7.68 billion; revenue increased 11.4% year over year, supported by semiconductor and AI demand.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $603.23, though elevated valuation, China-related competition, tariffs and uneven industrial demand pose risks.

Shares of Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) traded up 2.1% on Monday . The company traded as high as $519.50 and last traded at $518.21. 5,950,413 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 8,294,915 shares. The stock had previously closed at $507.67.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials has a strong history of exceeding quarterly earnings estimates, and the latest Zacks analysis says its current Earnings ESP and consensus-estimate trends point to another potential beat. The company’s most recent report also exceeded expectations, with adjusted EPS of $2.86 versus the $2.68 consensus and revenue of $7.91 billion versus $7.68 billion. Will Applied Materials Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Fundamentals remain supportive: recent revenue rose 11.4% year over year, margins and return on equity are strong, and management’s third-quarter fiscal 2026 EPS guidance of $3.16 to $3.56 suggests continued operating momentum. Demand tied to semiconductor manufacturing and artificial intelligence remains an important longer-term catalyst. Applied Materials Earnings Outlook
• Neutral Sentiment: Applied Materials is being discussed alongside equipment peers MKS Instruments and Veeco, where AI-related chip demand and advanced packaging are supporting growth but tariffs, China weakness and uneven industrial spending remain risks. These trends provide a mixed read-through for AMAT’s equipment orders. MKS Instruments Earnings Preview
• Negative Sentiment: Semiconductor stocks came under pressure on concerns that Chinese manufacturers are becoming more competitive, potentially challenging established equipment suppliers and pressuring future pricing or market share. Semiconductor Stocks Sink on China Competition Fears
• Negative Sentiment: One analysis downgraded Applied Materials ahead of earnings despite acknowledging its strong fundamentals, indicating that elevated valuation and the possibility of high expectations could limit upside if results or guidance disappoint. Applied Materials Downgrade Ahead of Earnings

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on AMAT shares. Deutsche Bank Aktiengesellschaft upped their target price on shares of Applied Materials from $450.00 to $550.00 and gave the company a "buy" rating in a report on Friday, May 15th. HC Wainwright set a $850.00 price target on Applied Materials in a research note on Monday, June 29th. JPMorgan Chase & Co. upped their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an "overweight" rating in a research note on Friday, May 15th. KeyCorp increased their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Finally, Zacks Research upgraded shares of Applied Materials from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $603.23.

Applied Materials Trading Up 2.1%

The company has a market capitalization of $411.44 billion, a PE ratio of 48.66, a P/E/G ratio of 1.29 and a beta of 1.61. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The business has a fifty day moving average price of $550.86 and a 200 day moving average price of $430.85.

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 company's revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts expect that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials's dividend payout ratio is presently 19.91%.

Insider Buying and Selling

In other news, CEO Gary E. Dickerson sold 20,000 shares of the firm's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the transaction, the chief executive officer owned 1,599,843 shares of the company's stock, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC grew its position in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock valued at $2,061,000 after acquiring an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in 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 valued at $590,000 after purchasing an additional 679 shares in the last quarter. Forefront Wealth Partners LLC acquired a new stake in Applied Materials during the 2nd quarter valued at $410,000. Schnieders Capital Management LLC. increased its stake in Applied Materials by 30.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider's stock worth $2,747,000 after buying an additional 3,469 shares during the period. Finally, Sei Investments Co. increased its stake in Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider's stock worth $77,383,000 after buying an additional 157,426 shares during the period. 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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