Wall Street Zen Downgrades Applied Materials (NASDAQ:AMAT) to Hold

Applied Materials (NASDAQ:AMAT) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

Other analysts have also issued research reports about the stock. Cantor Fitzgerald lifted their price objective on shares of Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a research note on Monday, June 29th. Bank of America upped their target price on shares of Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. raised their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Needham & Company LLC lifted their price target on shares of Applied Materials from $530.00 to $740.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, Stifel Nicolaus boosted their price objective on shares of Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a report on Friday, July 10th. One research 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.com, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus target price of $599.19.

Applied Materials Price Performance

AMAT stock opened at $507.67 on Friday. 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 has a 1 year low of $154.46 and a 1 year high of $739.67. The firm has a market cap of $403.07 billion, a P/E ratio of 47.67, a price-to-earnings-growth ratio of 1.29 and a beta of 1.61. The stock has a 50-day simple moving average of $550.86 and a 200-day simple moving average of $430.85.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company’s 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, equities analysts predict that Applied Materials will post 12.14 earnings per share for the current fiscal year.

Insider Activity at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares in the company, valued at $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds and other institutional investors have recently modified their holdings of the stock. Evolve Private Wealth LLC boosted its holdings in shares of Applied Materials by 59.0% in the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after buying an additional 1,067 shares during the period. WealthPlan Investment Management LLC acquired a new stake in Applied Materials during the fourth quarter worth about $1,082,000. Ameritas Advisory Services LLC raised its stake in Applied Materials by 183.7% during the fourth quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider’s stock worth $790,000 after acquiring an additional 1,990 shares during the period. Assetmark Inc. lifted its holdings in Applied Materials by 9.3% in the fourth quarter. Assetmark Inc. now owns 376,513 shares of the manufacturing equipment provider’s stock worth $96,760,000 after acquiring an additional 32,136 shares during the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong lifted its holdings in Applied Materials by 204.8% in the fourth quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider’s stock worth $36,177,000 after acquiring an additional 94,587 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I’m Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock’s Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

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.