Applied Materials (NASDAQ:AMAT) Shares Down 3.4% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price fell 3.4% during trading on Thursday . The stock traded as low as $325.56 and last traded at $328.39. 8,958,666 shares changed hands during trading, an increase of 10% from the average session volume of 8,175,018 shares. The stock had previously closed at $339.88.

More Applied Materials News

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

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. TD Cowen increased their target price on shares of Applied Materials from $315.00 to $450.00 and gave the stock a “buy” rating in a report on Friday. Sanford C. Bernstein reiterated an “outperform” rating and set a $425.00 price objective on shares of Applied Materials in a research note on Friday. BNP Paribas Exane raised shares of Applied Materials to a “hold” rating in a research note on Monday, November 17th. Mizuho increased their target price on Applied Materials from $370.00 to $410.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Stifel Nicolaus boosted their price target on Applied Materials from $340.00 to $450.00 and gave the stock a “buy” rating in a research report on Friday. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $361.03.

Applied Materials Price Performance

The stock has a 50-day moving average price of $295.20 and a two-hundred day moving average price of $236.38. The company has a current ratio of 2.61, a quick ratio of 1.87 and a debt-to-equity ratio of 0.32. The stock has a market cap of $281.70 billion, a price-to-earnings ratio of 36.33, a PEG ratio of 2.92 and a beta of 1.70.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating analysts’ consensus estimates of $2.19 by $0.19. Applied Materials had a return on equity of 38.52% and a net margin of 27.78%.The company had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.88 billion. During the same period last year, the business posted $2.38 earnings per share. The firm’s revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, equities research analysts forecast that Applied Materials, Inc. will post 9.38 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be issued a $0.46 dividend. The ex-dividend date of this dividend is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is currently 21.20%.

Insiders Place Their Bets

In related news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the transaction, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. This represents a 4.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $255.53, for a total value of $155,617.77. Following the completion of the transaction, the chief accounting officer owned 4,413 shares of the company’s stock, valued at $1,127,653.89. This trade represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,609 shares of company stock worth $2,044,898 over the last three months. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Large investors have recently bought and sold shares of the company. Brighton Jones LLC boosted its holdings in shares of Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after acquiring an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC lifted its position in Applied Materials by 26.7% during the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC acquired a new position in Applied Materials during the second quarter valued at $410,000. Mutual Advisors LLC lifted its position in Applied Materials by 3.1% during the second quarter. Mutual Advisors LLC now owns 6,100 shares of the manufacturing equipment provider’s stock valued at $1,133,000 after purchasing an additional 186 shares during the period. Finally, Rosenberg Matthew Hamilton boosted its holdings in Applied Materials by 44.3% in the second quarter. Rosenberg Matthew Hamilton now owns 456 shares of the manufacturing equipment provider’s stock valued at $83,000 after purchasing an additional 140 shares during the last quarter. 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.