Applied Materials (NASDAQ:AMAT) Trading Up 3.2% - Here's Why

Key Points

• Applied Materials stock jumped about 3.2% intraday to roughly $417 (high $420.50) on Friday, with ~6.1M shares traded, below its average daily volume.
• The company posted a Q1 non‑GAAP EPS beat of $2.38 vs. $2.21 (revenue $7.01B vs. $6.88B est.) and set Q2 FY2026 guidance of 2.440–2.840 EPS, citing stronger DRAM sales that improve margins.
• Bullish industry dynamics (accelerating DRAM/AI demand), strategic wins like joining Tesla’s Terafab project, and multiple analyst price‑target upgrades underpin upside and a consensus “Moderate Buy” view.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report)'s stock price was up 3.2% during mid-day trading on Friday . The company traded as high as $420.50 and last traded at $417.0020. Approximately 6,121,280 shares traded hands during trading, a decline of 16% from the average daily volume of 7,251,387 shares. The stock had previously closed at $403.91.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Q1 results and product mix: Applied reported a non‑GAAP EPS beat ($2.38 vs. $2.21 est.) and stronger DRAM sales that now account for a larger share of Semiconductor Systems revenue — a direct lever for profitability as AI-driven memory demand ramps. Philippe Laffont's Coatue Is Betting Billions on These 3 AI Stocks
• Positive Sentiment: Industry tailwinds — DRAM and AI: Multiple pieces highlight accelerating DRAM demand and constrained supply (memory prices upside) that benefit equipment suppliers like AMAT. This thesis underpins upside to revenue and margins. ‘DRAM Will Double or Triple From Here' as AI Demand Outpaces Supply Chain Capacity
• Positive Sentiment: Strategic deal flow: Applied joined Tesla’s Terafab project — a notable design/manufacturing win that signals demand from large-scale foundry and advanced packaging initiatives. Such partnerships support a multi-year equipment revenue runway. Applied Materials Just Joined the Tesla Terafab Project
• Positive Sentiment: Buy-side and media support: High-profile endorsements and allocations (Jim Cramer calling AMAT “a great buy,” and Coatue’s interest) are driving retail and institutional attention. Jim Cramer on Applied Materials
• Positive Sentiment: Analyst/industry picks: Sector writeups (Zacks and others) list AMAT among semiconductor equipment beneficiaries from AI/ML, supporting further multiple expansion expectations. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Neutral Sentiment: Upcoming catalyst: AMAT confirmed its Q2 FY2026 earnings call for May 14 — a near-term event that can amplify volatility depending on guidance and commentary on orders / backlog. Applied Materials to Report Fiscal Second Quarter 2026 Results on May 14, 2026
• Neutral Sentiment: Street expectations: Pre-earnings previews note Wall Street is looking for double‑digit EPS growth next quarter — positive if met but a potential source of downside if guidance is conservative. What to Expect From Applied Materials' Q2 2026 Earnings Report

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on AMAT shares. Susquehanna raised their price objective on Applied Materials from $435.00 to $500.00 and gave the stock a "positive" rating in a research report on Thursday, April 9th. Morgan Stanley raised their price objective on Applied Materials from $420.00 to $432.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 25th. Zacks Research raised Applied Materials from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $450.00 price objective on shares of Applied Materials in a research report on Friday, February 13th. Finally, TD Cowen raised their price objective on Applied Materials from $315.00 to $450.00 and gave the stock a "buy" rating in a research 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 assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $368.29.

Applied Materials Stock Performance

The company has a market capitalization of $330.94 billion, a price-to-earnings ratio of 42.68, a P/E/G ratio of 1.80 and a beta of 1.64. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The firm has a 50-day simple moving average of $365.19 and a two-hundred day simple moving average of $299.72.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.21 by $0.17. The company 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%.Applied Materials's revenue was down 2.1% compared to the same quarter last year. During the same period in the previous year, the company posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, sell-side analysts anticipate that Applied Materials, Inc. will post 11.1 EPS for the current fiscal year.

Applied Materials Increases Dividend

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

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 3,969 shares of Applied Materials stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the transaction, the director owned 28,589 shares in the company, valued at approximately $10,778,624.78. This trade represents a 12.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the transaction, the chief accounting officer owned 4,625 shares of the company's stock, valued at $1,753,615. The trade was a 10.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 12,003 shares of company stock valued at $4,484,189 in the last three months. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in AMAT. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials in the 4th quarter valued at about $25,000. Marquette Asset Management LLC boosted its stake in shares of Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider's stock valued at $26,000 after buying an additional 75 shares during the period. Redmont Wealth Advisors LLC purchased a new position in shares of Applied Materials in the 3rd quarter valued at about $26,000. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials in the 4th quarter valued at about $26,000. Finally, Highline Wealth Partners LLC boosted its stake in shares of Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after buying an additional 38 shares during the period. Hedge funds and other institutional investors 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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