Canada Pension Plan Investment Board Has $1.62 Billion Stake in Applied Materials, Inc. $AMAT

Key Points

• Canada Pension Plan Investment Board increased its Applied Materials stake by 6.1% in the second quarter, bringing its holdings to 2.23 million shares valued at approximately $1.62 billion. Institutional investors collectively own 80.56% of the company.
• Applied Materials exceeded quarterly expectations, reporting $3.50 in EPS and $9.12 billion in revenue, with revenue up 24.8% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $657.76.
• Insiders sold $169 million worth of shares over the past 90 days, while investors weigh strong AI-driven demand and resilient services revenue against China-related export restrictions and competitive risks.

Canada Pension Plan Investment Board grew its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT - Free Report) by 6.1% in the second quarter, according to its most recent filing with the SEC. The institutional investor owned 2,234,458 shares of the manufacturing equipment provider's stock after purchasing an additional 129,337 shares during the period. Applied Materials comprises approximately 0.9% of Canada Pension Plan Investment Board's portfolio, making the stock its 18th biggest position. Canada Pension Plan Investment Board owned about 0.28% of Applied Materials worth $1,615,513,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Cornerstone Financial Management LLC bought a new stake in Applied Materials during the fourth quarter worth $25,000. Wilkerson Advisory Group LLC bought a new position in Applied Materials during the 4th quarter valued at $26,000. Harborfront Financial Group LLC purchased a new position in Applied Materials during the 2nd quarter worth $27,000. Financial Freedom LLC bought a new stake in shares of Applied Materials in the 1st quarter worth $28,000. Finally, Joseph Group Capital Management purchased a new stake in shares of Applied Materials in the fourth quarter valued at about $31,000. Institutional investors own 80.56% of the company's stock.

Insider Buying and Selling

In related news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value 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. The trade was a 6.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director directly owned 40,559 shares in the company, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 276,692 shares of company stock worth $169,030,834 in the last 90 days. 0.30% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

AMAT has been the topic of several analyst reports. Citigroup restated a "buy" rating on shares of Applied Materials in a report on Monday, August 3rd. Morgan Stanley decreased their price objective on shares of Applied Materials from $646.00 to $642.00 and set an "equal weight" rating for the company in a research note on Friday, August 14th. Wall Street Zen upgraded Applied Materials from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. HC Wainwright set a $850.00 target price on Applied Materials in a report on Monday, June 29th. Finally, Barclays increased their price target on Applied Materials from $500.00 to $590.00 and gave the company an "overweight" rating in a research report on Thursday, June 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and an average price target of $657.76.

Applied Materials Stock Performance

NASDAQ:AMAT opened at $479.76 on Thursday. The company has a market capitalization of $380.74 billion, a P/E ratio of 41.36, a P/E/G ratio of 1.03 and a beta of 1.61. The business has a fifty day simple moving average of $556.61 and a two-hundred day simple moving average of $455.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. Applied Materials, Inc. has a 1 year low of $154.46 and a 1 year high of $739.67.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to analysts' expectations of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business's revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts expect that Applied Materials, Inc. will post 12.73 earnings per share for the current year.

Applied Materials Dividend Announcement

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

Key Applied Materials News

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

• Positive Sentiment: AI infrastructure is supporting a new growth cycle. Chipmakers are increasing spending on advanced DRAM, high-bandwidth memory, leading-edge logic and advanced packaging—all areas that benefit Applied Materials’ semiconductor equipment business. The company’s latest quarter showed revenue growth of 24.8% year over year, with earnings and revenue exceeding analyst expectations. Applied Materials Enters a New AI-Driven Growth Cycle
• Positive Sentiment: Services and parts demand remain resilient. Applied Materials’ Applied Global Services (AGS) division reportedly reached record revenue and expanded margins, helped by subscription services, parts demand and higher semiconductor-fab utilization. This recurring revenue can provide stability across equipment cycles. AMAT’s AGS Business Gains Momentum
• Positive Sentiment: Analysts see potential upside after the recent selloff. Consensus price targets imply roughly 35% upside, while another report cited an average target near $641. However, these targets depend on continued earnings-estimate improvements and sustained AI spending. Analyst Upside Potential for AMAT
• Neutral Sentiment: Mizuho remains constructive but lowered its target. The firm reduced its price target from $650 to $590 while maintaining an “outperform” rating, reflecting a more cautious near-term outlook despite expected upside. Mizuho AMAT Price Target Update
• Negative Sentiment: China exposure is the main overhang. Tighter export controls and the emergence of Chinese domestic immersion DUV lithography systems are raising concerns about Applied Materials’ competitiveness and future China sales. Reports caution that not all of the company’s approximately $2.087 billion in quarterly China revenue is immediately threatened, but investors are still pricing in greater regulatory and competitive risk. Applied Materials’ China Problem Is Getting Worse

Applied Materials Profile

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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