Applied Materials (NASDAQ:AMAT) Trading 2.9% Higher – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMAT) was up 2.9% during trading on Wednesday . The company traded as high as $578.14 and last traded at $570.50. 7,512,819 shares were traded during trading, a decline of 10% from the average daily volume of 8,318,023 shares. The stock had previously closed at $554.50.

More Applied Materials News

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

• Positive Sentiment: Meta Platforms’ reported plan to manufacture its own AI chip has lifted semiconductor equipment names like Applied Materials, as investors see more demand for wafer fabrication tools and AI infrastructure. Applied Materials, KLA, Lam Research Take Off on Meta’s Chip Plans
• Positive Sentiment: CEO Gary Dickerson said chipmakers have “tremendous visibility” into demand and that AI investment could run longer than expected, reinforcing the view that Applied Materials has a multi-year growth runway. Applied Materials (AMAT) Stock Jumps after CEO Says AI Chip Demand Has Years to Run
• Positive Sentiment: Stifel raised its price target on Applied Materials to $650 from $530 and Needham lifted its target to $740 from $530, both with buy ratings, signaling stronger confidence in earnings and valuation. Applied Materials price target raised by Stifel / Needham
• Positive Sentiment: Broader chip-sector strength also helped, with semiconductor stocks rallying as investors rotated back into AI-linked names and equipment makers. US stocks end higher; chip surge offsets Iran worries
• Neutral Sentiment: Applied Materials was removed from several Russell value indices in late June, which may affect index-driven ownership and how some investors classify the stock, but it is not a direct operating setback. How Investors Are Reacting To Applied Materials (AMAT) Being Dropped From Key Russell Value Indices

Analysts Set New Price Targets

Several brokerages have commented on AMAT. Wells Fargo & Company increased their price target on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Barclays boosted their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research note on Thursday, June 11th. KeyCorp upped their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Seaport Research Partners started coverage on shares of Applied Materials in a research note on Monday, May 4th. They issued a “buy” rating and a $500.00 target price on the stock. Finally, Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $589.48.

Applied Materials Trading Up 2.4%

The stock has a market capitalization of $478.36 billion, a price-to-earnings ratio of 56.57, a PEG ratio of 1.59 and a beta of 1.57. The company’s 50 day moving average is $513.50 and its 200 day moving average is $400.88. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion for 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 business’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period last year, the business posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, research analysts forecast that Applied Materials, Inc. will post 12.11 EPS for the current fiscal year.

Applied Materials Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio is 19.91%.

Insider Activity at Applied Materials

In other news, CEO Gary E. Dickerson sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the sale, the chief executive officer directly owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction on 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 transaction, the senior vice president owned 146,916 shares of the company’s stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last three months. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several institutional investors have recently made changes to their positions in the business. Financial Freedom LLC acquired a new stake in Applied Materials during the first quarter valued at approximately $28,000. Elevation Wealth Partners LLC raised its holdings in shares of Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after buying an additional 24 shares in the last quarter. Cornerstone Financial Management LLC acquired a new position in Applied Materials during the fourth quarter worth $25,000. Whipplewood Advisors LLC lifted its holdings in shares of Applied Materials by 218.8% during the first quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after acquiring an additional 70 shares during the period. Finally, Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials in the 4th quarter valued at $26,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Company 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.