BlackRock Inc. Raises Holdings in Applied Materials, Inc. $AMAT

Key Points

• BlackRock increased its Applied Materials stake by 1.6% in the second quarter, adding 1.24 million shares to own approximately 10.1% of the company, worth nearly $58 billion. Institutional investors collectively hold 80.56% of AMAT’s outstanding stock.
• Applied Materials reported strong quarterly results, with revenue rising 24.8% year over year to $9.12 billion and EPS of $3.50 exceeding analyst expectations. The company also declared a quarterly dividend of $0.53 per share, equivalent to a 0.4% yield.
• Analyst sentiment remains positive amid strong AI-related demand, with a consensus “Moderate Buy” rating and an average price target of $659.83. However, insider selling and a broader chip-equipment selloff indicate concerns about valuation, semiconductor-cycle timing and capital spending.

BlackRock Inc. increased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 1.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 80,212,518 shares of the manufacturing equipment provider's stock after acquiring an additional 1,237,685 shares during the period. Applied Materials comprises 0.9% of BlackRock Inc.'s holdings, making the stock its 17th largest position. BlackRock Inc. owned approximately 10.10% of Applied Materials worth $57,993,650,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. JFS Wealth Advisors LLC boosted its position in Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock worth $296,000 after purchasing an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC lifted its stake in shares of Applied Materials by 2.1% in the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock valued at $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC boosted its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after buying an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC boosted its holdings in Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock worth $273,000 after buying an additional 21 shares in the last quarter. Finally, Basecamp Wealth Advisors LLC grew its position in Applied Materials by 0.7% during the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock valued at $1,124,000 after buying an additional 22 shares during the period. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Trading Up 0.0%

Shares of Applied Materials stock opened at $496.21 on Friday. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The firm has a market capitalization of $393.97 billion, a PE ratio of 42.78, a P/E/G ratio of 1.06 and a beta of 1.61. The firm's 50-day moving average price is $564.17 and its 200 day moving average price is $450.76.

Applied Materials (NASDAQ:AMAT - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same period in the previous year, the business earned $2.48 EPS. Applied Materials's quarterly revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts predict that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials's payout ratio is presently 18.28%.

Applied Materials News Summary

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

• Positive Sentiment: AI-driven demand outlook remains strong. JPMorgan maintained an Overweight rating and said Applied Materials’ semiconductor-systems revenue could grow about 40% this year, with AI-related spending expected to account for roughly 80% of chip-equipment demand. Applied Materials Sees Years Of AI-Fueled Growth Ahead
• Positive Sentiment: Product launches support advanced packaging and memory growth. New equipment aimed at AI-related chip production, advanced packaging and high-bandwidth memory could benefit Applied Materials as memory manufacturers increase capacity. Can Applied Materials Sustain Its Growth Amid AI-Driven Demand?
• Positive Sentiment: Analyst support remains constructive. Berenberg issued a Buy rating, while recent research coverage and a Zacks Strong Buy momentum ranking provide additional near-term support for AMAT. Applied Materials Receives a Buy from Berenberg Bank
• Neutral Sentiment: Recent results were strong but already appear reflected in expectations. Applied Materials reported record quarterly revenue of $9.12 billion, up 24.8% year over year, and exceeded earnings and revenue estimates. Its above-consensus next-quarter guidance has not prevented the stock from declining, indicating investors may be focused on valuation, positioning and broader sector concerns. Applied Materials Delivered a Record Quarter
• Negative Sentiment: Institutional selling is weighing on sentiment. Paul Tudor Jones liquidated his common-stock position and reportedly increased his put exposure. Dr. Michael Burry is also betting against AMAT, creating headline risk even though these trades do not necessarily represent a broad rejection of AI investment. Paul Tudor Jones Liquidated His Applied Materials Stake
• Negative Sentiment: Chip-equipment stocks are facing a sector-wide selloff. Applied Materials, Lam Research and Teradyne have fallen together, raising concerns about semiconductor-cycle timing, customer capital-expenditure plans and whether AI expectations have become too optimistic. What Is Prompting the Selloff in Chip Equipment Stocks?

Insider Transactions at Applied Materials

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Timothy M. Deane sold 8,621 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 277,820 shares of company stock worth $169,538,434 in the last quarter. 0.30% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Royal Bank Of Canada lifted their price objective on shares of Applied Materials from $520.00 to $600.00 and gave the company an "outperform" rating in a report on Friday, August 14th. The Goldman Sachs Group restated a "buy" rating and set a $645.00 target price on shares of Applied Materials in a research report on Monday, August 3rd. Jefferies Financial Group lifted their price target on Applied Materials from $510.00 to $770.00 and gave the company a "buy" rating in a research note on Friday, June 26th. UBS Group set a $675.00 price target on Applied Materials and gave the stock a "buy" rating in a report on Friday, August 14th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $605.00 price target on shares of Applied Materials in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Applied Materials has an average rating of "Moderate Buy" and a consensus target price of $659.83.

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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