Applied Materials (NASDAQ:AMAT) Trading Up 4.3% - Time to Buy?

Key Points

• Applied Materials shares rose 4.3% in mid-day trading, reaching as high as $623.35 on volume that was 44% above average, signaling strong investor interest in the stock.
• Recent catalysts are mostly positive, including AI-driven demand for semiconductor equipment, higher analyst price targets, and new growth initiatives such as the SENZ smart-glasses system and an AR optics partnership with EssilorLuxottica.
• The company also reported strong fiscal Q2 results, beating EPS and revenue estimates, and analysts remain broadly constructive with 27 Buy ratings versus 8 Holds, though some commentary warns the stock’s valuation may be stretched.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) was up 4.3% during mid-day trading on Wednesday . The company traded as high as $623.35 and last traded at $592.92. Approximately 10,995,858 shares were traded during trading, an increase of 44% from the average daily volume of 7,645,202 shares. The stock had previously closed at $568.23.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Citi’s higher price target and broader optimism around AI spending are fueling demand for semiconductor equipment stocks, with AMAT singled out as a beneficiary. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: Applied Materials unveiled SENZ, a fully integrated visual system for next-generation smart glasses, expanding its addressable market beyond semiconductor tools and into AI/AR hardware infrastructure. Applied Materials shares jump on launch of integrated AR smart glasses system
• Positive Sentiment: Its Semiconductor Systems segment is still benefiting from AI-driven chip investments, with record revenue and strength in advanced packaging pointing to continued momentum in 2026. Can AMAT's Semiconductor Systems Segment Sustain Momentum in 2026?
• Positive Sentiment: A long-term partnership with EssilorLuxottica to develop AR optics and AI-powered smart eyewear gives AMAT another growth narrative and supports the view that the company is building new revenue streams. EssilorLuxottica and Applied Materials Join Forces to Advance Augmented Reality Optics Platforms for Next-Generation Smart Glasses
• Neutral Sentiment: Several commentary pieces argue that semiconductor equipment suppliers are capturing outsized value in the AI supply chain, reinforcing a favorable industry backdrop for AMAT. Why Semiconductor Equipment Suppliers Are Crushing Their Customers in 2026
• Negative Sentiment: Some market commentary notes AMAT’s valuation has become stretched, which could make the stock more vulnerable if AI demand or analyst enthusiasm cools. Applied Materials valuation tops dot-com peak

Analysts Set New Price Targets

A number of equities analysts have issued reports on AMAT shares. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Applied Materials in a research note on Friday, March 27th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $525.00 price target on shares of Applied Materials in a research note on Friday, May 15th. Jefferies Financial Group raised their price objective on Applied Materials from $415.00 to $510.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Deutsche Bank Aktiengesellschaft raised their price objective on Applied Materials from $450.00 to $550.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Finally, Cantor Fitzgerald raised their price objective on Applied Materials from $575.00 to $650.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 10th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, Applied Materials has an average rating of "Moderate Buy" and an average target price of $489.16.

Applied Materials Price Performance

The stock has a fifty day moving average price of $436.36 and a 200-day moving average price of $358.14. The company has a market cap of $470.75 billion, a PE ratio of 55.67, a price-to-earnings-growth ratio of 1.63 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates 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 prior year, the company earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts expect that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. 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 is presently 19.91%.

Insiders Place Their Bets

In other news, CAO Adam Sanders sold 268 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total value of $116,370.96. Following the completion of the sale, the chief accounting officer owned 4,280 shares in the company, valued at $1,858,461.60. This represents a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Judy Bruner sold 1,128 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total value of $507,600.00. Following the completion of the sale, the director owned 26,544 shares of the company's stock, valued at $11,944,800. The trade was a 4.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,896 shares of company stock worth $27,135,121 over the last three months. Company insiders own 0.30% of the company's stock.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of AMAT. Brighton Jones LLC raised its holdings in shares of Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after acquiring an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Applied Materials by 26.7% during the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider's stock worth $590,000 after acquiring an additional 679 shares in the last quarter. Forefront Wealth Partners LLC purchased a new stake in shares of Applied Materials during the second quarter worth $410,000. Schnieders Capital Management LLC. raised its holdings in shares of 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 in the last quarter. Finally, Sei Investments Co. raised its holdings in shares of 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 in the last quarter. 80.56% of the stock is currently owned by hedge funds and other 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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