Applied Materials, Inc. $AMAT Stock: NorthCrest Asset Manangement LLC Reduces Stake

Key Points

• NorthCrest Asset Management reduced its Applied Materials stake by 3.0% in the third quarter, selling 5,572 shares and retaining 180,152 shares valued at approximately $91.8 million. Institutional investors and hedge funds own 80.56% of the company.
• Applied Materials announced a planned $5 billion EPIC Center in Silicon Valley and expanded its partnership with Intel to develop next-generation semiconductor manufacturing and packaging technologies, supporting its long-term AI growth strategy.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and a $640.20 average price target. However, investors remain concerned about declining market share and the execution risks associated with the company’s substantial capital investments.

NorthCrest Asset Manangement LLC trimmed its position in Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 3.0% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 180,152 shares of the manufacturing equipment provider's stock after selling 5,572 shares during the quarter. Applied Materials makes up 2.1% of NorthCrest Asset Manangement LLC's portfolio, making the stock its 8th biggest position. NorthCrest Asset Manangement LLC's holdings in Applied Materials were worth $91,800,000 at the end of the most recent reporting period.

Other large investors also recently added to or reduced their stakes in the company. HF Advisory Group LLC lifted its stake in Applied Materials by 24.1% in the third quarter. HF Advisory Group LLC now owns 7,668 shares of the manufacturing equipment provider's stock valued at $3,922,000 after buying an additional 1,490 shares during the period. Armstrong Advisory Group Inc. increased its stake in Applied Materials by 67.0% in the third quarter. Armstrong Advisory Group Inc. now owns 593 shares of the manufacturing equipment provider's stock valued at $303,000 after purchasing an additional 238 shares in the last quarter. Oak Grove Capital LLC acquired a new position in shares of Applied Materials in the 3rd quarter valued at $477,000. Marquette Asset Management LLC raised its position in shares of Applied Materials by 94.4% during the third quarter. Marquette Asset Management LLC now owns 210 shares of the manufacturing equipment provider's stock worth $107,000 after purchasing an additional 102 shares during the period. Finally, Gilpin Wealth Management LLC lifted its stake in Applied Materials by 4.8% in the third quarter. Gilpin Wealth Management LLC now owns 455 shares of the manufacturing equipment provider's stock valued at $221,000 after buying an additional 21 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials unveiled a planned $5 billion EPIC Center in Silicon Valley, described as the world’s largest semiconductor equipment and process-technology R&D facility. The site will bring chipmakers, systems companies, equipment suppliers and universities together to accelerate development and commercialization of AI-era manufacturing technologies. Applied Materials EPIC Center announcement
• Positive Sentiment: The expanded partnership with Intel covers next-generation transistors, chip interconnects and advanced packaging, including Intel’s Foveros 3D-stacking technology. The collaboration could strengthen Applied Materials’ position as AI chip manufacturing becomes more complex, although financial benefits are expected over time. Intel and Applied Materials partnership
• Positive Sentiment: Bank of America reiterated a Buy rating and maintained a $650 price target, citing structural wafer-fabrication equipment growth and potential earnings upside. Bank of America rating
• Neutral Sentiment: Applied Ventures participated in funding for Flexcompute, which is developing AI-based physics models for applications including chip-package design. The investment supports Applied’s exposure to semiconductor design innovation, but the financial impact was not disclosed. Flexcompute strategic investment
• Negative Sentiment: Investors remain concerned that Applied Materials may not be capturing enough of the industry’s growth. Global wafer-fabrication equipment spending is projected to rise 23.1% to $143.9 billion in 2026, while Applied’s reported market share declined from 20% in 2024, raising questions about competitive positioning. Applied Materials market-share analysis
• Negative Sentiment: The EPIC Center’s large capital commitment could pressure near-term returns if commercialization takes longer than expected. Likewise, the Intel partnership’s manufacturing payoff remains prospective, which may explain why investors focused more on execution risk than on the strategic announcements.

Wall Street Analysts Forecast Growth

AMAT has been the topic of several research reports. HC Wainwright set a $850.00 target price on Applied Materials in a research note on Monday, June 29th. Seaport Research Partners reaffirmed a "buy" rating and issued a $575.00 target price (up from $500.00) on shares of Applied Materials in a research report on Friday, August 14th. Sanford C. Bernstein lifted their price target on shares of Applied Materials from $675.00 to $700.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Bank of America cut their price target on shares of Applied Materials from $720.00 to $650.00 and set a "buy" rating on the stock in a research report on Friday, August 14th. Finally, TD Cowen restated a "buy" rating and set a $700.00 price objective on shares of Applied Materials in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $640.20.

Applied Materials Stock Down 1.9%

Applied Materials stock opened at $497.53 on Tuesday. The company's 50-day moving average price is $488.47 and its two-hundred day moving average price is $483.54. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock has a market cap of $394.84 billion, a P/E ratio of 42.89, a P/E/G ratio of 1.41 and a beta of 1.60. Applied Materials, Inc. has a twelve month low of $203.40 and a twelve month high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The firm's revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials's dividend payout ratio (DPR) is presently 18.28%.

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company's stock, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares in the company, valued at $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is currently owned by corporate insiders.

Applied Materials Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company's offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.

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