Applied Materials (NASDAQ:AMAT) Earns “Outperform” Rating from Royal Bank Of Canada

Applied Materials (NASDAQ:AMAT)‘s stock had its “outperform” rating reiterated by research analysts at Royal Bank Of Canada in a report released on Wednesday, Benzinga reports. They currently have a $600.00 price objective on the manufacturing equipment provider’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 34.34% from the stock’s previous close.

Other equities research analysts have also issued reports about the stock. Susquehanna boosted their price target on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. Bank of America reduced their target price on Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a report on Friday, August 14th. Jefferies Financial Group raised their price target on Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Stifel Nicolaus raised their price target on Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, Evercore boosted their price objective on Applied Materials from $515.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus price target of $640.20.

Applied Materials Stock Down 3.8%

AMAT traded down $17.61 on Wednesday, reaching $446.63. The company’s stock had a trading volume of 8,472,730 shares, compared to its average volume of 7,867,301. The company has a market capitalization of $354.45 billion, a price-to-earnings ratio of 38.50, a P/E/G ratio of 1.38 and a beta of 1.60. Applied Materials has a fifty-two week low of $203.40 and a fifty-two week high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock has a 50 day moving average of $485.07 and a two-hundred day moving average of $484.96.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter last year, the company earned $2.48 earnings per share. The firm’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, analysts forecast that Applied Materials will post 12.79 EPS for the current fiscal year.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 9,225 shares of company stock valued at $4,454,181. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently added to or reduced their stakes in the company. Ausdal Financial Partners Inc. acquired a new stake in Applied Materials in the second quarter valued at $4,005,000. Caldwell Investment Management Ltd. acquired a new position in shares of Applied Materials during the 2nd quarter worth $1,589,000. CX Institutional grew its stake in shares of Applied Materials by 333.3% during the 3rd quarter. CX Institutional now owns 25,853 shares of the manufacturing equipment provider’s stock worth $12,631,000 after purchasing an additional 19,886 shares during the period. Evolve Private Wealth LLC increased 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 purchasing an additional 1,067 shares in the last quarter. Finally, Principal Financial Group Inc. increased its holdings in shares of Applied Materials by 3.0% in the 2nd quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after purchasing an additional 28,982 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Royal Bank of Canada reaffirmed its “Outperform” rating and assigned a $600 price target, implying substantial potential upside. Analysts overall see roughly 39% upside based on consensus targets, supported by favorable earnings-estimate revisions. Applied Materials long-term targets
• Positive Sentiment: Applied Materials unveiled its EPIC semiconductor research and development center, backed by major industry partners including Intel, Micron, SK Hynix and Samsung. The approximately $5 billion initiative is intended to accelerate advanced-chip development and strengthen the company’s position in AI infrastructure. Applied Materials EPIC center
• Positive Sentiment: Management highlighted potential market-share gains, eBeam equipment revenue of about $2 billion in 2026 and semiconductor-services revenue exceeding $12 billion by 2030. Applied Ventures also invested in Flexcompute to advance AI-powered physics modeling for faster chip research and development. Applied Ventures Flexcompute investment
• Neutral Sentiment: Applied Materials has continued to beat quarterly earnings expectations, but investors are weighing those results against an elevated valuation and concerns about how much future AI spending is already reflected in the stock.
• Negative Sentiment: The stock came under pressure after the investor-day presentation because the 2030 margin and growth targets were viewed as conservative or insufficiently specific. Reports also pointed to an omission that raised concerns about the company’s future outlook, tempering enthusiasm for the otherwise strong AI-demand narrative. Why Applied Materials sank
• Negative Sentiment: Semiconductor-equipment shares broadly sold off as investors took profits after a strong run, with weakness in overseas chip markets adding pressure. Broader technology declines and uncertainty ahead of inflation data further reduced risk appetite. Semiconductor equipment stock selloff

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.