Applied Materials (NASDAQ:AMAT) Shares Down 1.6% – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) dropped 1.6% during trading on Tuesday . The company traded as low as $397.37 and last traded at $406.91. Approximately 8,375,542 shares traded hands during mid-day trading, an increase of 13% from the average daily volume of 7,398,173 shares. The stock had previously closed at $413.57.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials announced Broadcom as an EPIC innovation partner, deepening its role in advanced packaging R&D for AI chips and systems. Applied Materials Announces Broadcom as EPIC Innovation Partner
• Positive Sentiment: Recent commentary highlighted AMAT’s strong Q1 results, including revenue and earnings beats plus upbeat guidance, reinforcing the view that AI spending is lifting semiconductor equipment demand. AMAT Q1 Deep Dive: AI Demand Drives Growth in Semiconductor Equipment and Services
• Positive Sentiment: Applied Materials was named to a Zacks Rank #1 momentum list, suggesting analysts see continued near-term strength in the stock’s trend. Best Momentum Stocks to Buy for May 20th
• Neutral Sentiment: Several articles compared AMAT favorably with peers like Lam Research, but these were mostly valuation and strategy discussions rather than new company-specific developments. Lam Research vs. Applied Materials: Which AI Chip Stock Has the Edge?
• Negative Sentiment: AMAT was mentioned among semiconductor names that fell during a broader sector sell-off tied to Samsung labor-strike concerns and TSMC-related supply-chain worries, which could create short-term pressure. MACOM, Applied Materials, and Photronics Shares Are Falling, What You Need To Know

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on AMAT shares. Citigroup boosted their price objective on shares of Applied Materials from $420.00 to $520.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. KGI Securities raised shares of Applied Materials to an “outperform” rating and set a $425.00 price objective for the company in a research report on Friday, February 13th. Barclays raised their price target on shares of Applied Materials from $450.00 to $500.00 and gave the stock an “overweight” rating in a research report on Friday, May 15th. Wolfe Research raised their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. Finally, Summit Insights raised shares of Applied Materials from a “hold” rating to a “buy” rating in a research note on Friday, February 13th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Applied Materials has an average rating of “Moderate Buy” and an average price target of $465.14.

Applied Materials Trading Up 0.1%

The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The company’s 50-day moving average is $385.47 and its 200-day moving average is $325.31. The stock has a market capitalization of $339.16 billion, a price-to-earnings ratio of 40.13, a PEG ratio of 1.20 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. The firm 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%. Applied Materials’s revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts anticipate that Applied Materials, Inc. will post 12.02 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s dividend payout ratio is currently 17.28%.

Insider Buying and Selling

In other news, Director Judy Bruner sold 3,969 shares of the stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the sale, the director directly owned 28,589 shares of the company’s stock, valued at approximately $10,778,624.78. This represents a 12.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 534 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the sale, the chief accounting officer directly owned 4,625 shares of the company’s stock, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 7,003 shares of company stock valued at $2,678,139 over the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Materials

Large investors have recently modified their holdings of the stock. Capital Research Global Investors boosted its stake in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after acquiring an additional 17,829,377 shares during the last quarter. Norges Bank acquired a new stake in Applied Materials in the 4th quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Applied Materials by 617.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after buying an additional 7,856,576 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in Applied Materials by 40.1% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock worth $2,563,376,000 after buying an additional 3,583,751 shares during the last quarter. Finally, Auto Owners Insurance Co raised its holdings in shares of Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock worth $86,610,000 after purchasing an additional 3,357,167 shares during the period. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.