Applied Materials, Inc. $AMAT Shares Bought by CloudAlpha Capital Management Limited Hong Kong

Key Points

• CloudAlpha Capital Management more than tripled its Applied Materials stake in the fourth quarter, buying 94,587 additional shares and bringing its position to 140,773 shares worth about $36.2 million.
• Applied Materials delivered a strong quarter, with Q1 revenue of $7.91 billion and non-GAAP EPS of $2.86 both beating estimates. Management also issued stronger-than-expected next-quarter guidance, supported by AI-driven demand for semiconductor equipment.
• Analysts remain largely constructive on the stock, with several firms lifting price targets and the company boosting its quarterly dividend to $0.53 per share. However, Morgan Stanley reportedly downgraded AMAT, a reminder that some caution remains despite the upbeat fundamentals.

CloudAlpha Capital Management Limited Hong Kong grew its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 204.8% during the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 140,773 shares of the manufacturing equipment provider's stock after purchasing an additional 94,587 shares during the period. Applied Materials makes up about 1.7% of CloudAlpha Capital Management Limited Hong Kong's holdings, making the stock its 13th largest position. CloudAlpha Capital Management Limited Hong Kong's holdings in Applied Materials were worth $36,177,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Covestor Ltd increased its stake in Applied Materials by 7.2% in the 4th quarter. Covestor Ltd now owns 697 shares of the manufacturing equipment provider's stock valued at $179,000 after purchasing an additional 47 shares in the last quarter. Muirfield Wealth Advisors LLC acquired a new stake in Applied Materials in the fourth quarter valued at $274,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new stake in Applied Materials in the fourth quarter valued at $85,301,000. PNC Financial Services Group Inc. increased its position in shares of Applied Materials by 0.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 498,238 shares of the manufacturing equipment provider's stock valued at $128,042,000 after buying an additional 3,463 shares in the last quarter. Finally, Saranac Partners Ltd increased its position in shares of Applied Materials by 3.8% in the fourth quarter. Saranac Partners Ltd now owns 24,487 shares of the manufacturing equipment provider's stock valued at $6,316,000 after buying an additional 900 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials reported Q1 revenue of $7.91 billion, topping expectations, while non-GAAP EPS of $2.86 also beat estimates. Management’s next-quarter revenue guidance was stronger than analysts expected, pointing to continued AI-driven demand for semiconductor equipment and services. AMAT Q1 Deep Dive: AI Demand Drives Growth in Semiconductor Equipment and Services
• Positive Sentiment: Argus raised its price target on Applied Materials to $500 and reiterated a buy rating, signaling confidence in further upside from the AI infrastructure buildout and the company’s semiconductor manufacturing equipment leadership.
• Positive Sentiment: Multiple articles highlighted rising earnings estimates and historic gross margin strength, suggesting investors are optimistic that profit growth can continue as premium products and services benefit from strong chip demand. Surging Earnings Estimates Signal Upside for Applied Materials (AMAT) Stock
• Neutral Sentiment: Applied Materials is drawing heavy investor attention and positive discussion around its international revenue trends, but these pieces appear more informational than immediate stock-moving catalysts. Investors Heavily Search Applied Materials, Inc. (AMAT): Here is What You Need to Know
• Negative Sentiment: Morgan Stanley reportedly downgraded Applied Materials while upgrading Lam Research, which could temper enthusiasm despite the company’s strong fundamentals and may be contributing to pressure on the shares. Lam Research gets an upgrade, Applied Materials cut at Morgan Stanley

Applied Materials Price Performance

Applied Materials stock opened at $406.91 on Wednesday. Applied Materials, Inc. has a 12-month low of $153.47 and a 12-month high of $448.45. The stock has a market capitalization of $322.93 billion, a P/E ratio of 38.21, a P/E/G ratio of 1.19 and a beta of 1.66. The firm's 50-day moving average is $382.08 and its two-hundred day moving average is $322.58. 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 posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company's revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts predict that Applied Materials, Inc. will post 11.75 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently declared 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 represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost from Applied Materials's previous quarterly dividend of $0.46. Applied Materials's dividend payout ratio is currently 17.28%.

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 2,500 shares of Applied Materials stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total value of $979,275.00. Following the completion of the sale, the director owned 26,089 shares of the company's stock, valued at $10,219,322.19. The trade was a 8.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 534 shares of the company's stock in a transaction on 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 7,003 shares of company stock worth $2,678,139 in the last 90 days. Insiders own 0.30% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on AMAT shares. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday. Citigroup lifted their target price on shares of Applied Materials from $420.00 to $520.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Morgan Stanley reaffirmed an "equal weight" rating and issued a $502.00 price target (up from $454.00) on shares of Applied Materials in a report on Friday. Wells Fargo & Company increased their price target on shares of Applied Materials from $435.00 to $520.00 and gave the company an "overweight" rating in a research report on Friday. Finally, HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They set a "buy" rating and a $517.00 price objective for the company. Twenty-seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $465.14.

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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