Applied Materials (NASDAQ:AMAT) Trading Down 3.2% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price was down 3.2% during trading on Monday . The stock traded as low as $521.57 and last traded at $522.12. 6,967,291 shares traded hands during trading, a decline of 15% from the average daily volume of 8,213,133 shares. The stock had previously closed at $539.14.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials remains a key “picks-and-shovels” beneficiary of artificial-intelligence infrastructure spending. Its semiconductor-manufacturing equipment supports AI-chip and data-center production, while its broad technology portfolio and strong earnings outlook underpin the bullish case. AMAT to Post Q3 Earnings: Time to Buy, Sell or Hold the Stock?
• Positive Sentiment: Potential demand from Tesla and SpaceX’s proposed $16.8 billion “Terafab” project could benefit Applied Materials and other chip-equipment suppliers if the plan advances. The Zacks Analyst Blog Highlights SpaceX, Tesla, KLA Corp, Onto Innovation, Applied Materials and Lam Research
• Positive Sentiment: One analyst reportedly raised the company’s fiscal 2027 EPS forecast, suggesting continued confidence in Applied Materials’ longer-term earnings trajectory. FY2027 EPS Forecast for Applied Materials Lifted by Analyst
• Neutral Sentiment: Investors are focused on estimates beyond revenue and EPS, including orders, margins and segment trends, which may determine whether the earnings report supports the stock’s AI-driven valuation. Countdown to Applied Materials Q3 Earnings
• Negative Sentiment: AMAT has become highly sensitive to the earnings release: options markets imply the possibility of a double-digit move, and the stock remains well below its recent high. Any weaker-than-expected guidance, chip-equipment demand or China-related commentary could amplify selling pressure. Earnings Volatility Watch

Analyst Ratings Changes

AMAT has been the subject of several analyst reports. Jefferies Financial Group boosted their target price on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research note on Friday, June 26th. Raymond James Financial set a $650.00 price target on shares of Applied Materials in a research report on Wednesday, June 10th. Stifel Nicolaus lifted their price objective on shares of Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a report on Friday, July 10th. Mizuho upped their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 8th. Finally, Needham & Company LLC increased their target price 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. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Applied Materials presently has a consensus rating of “Moderate Buy” and an average target price of $603.23.

Applied Materials Stock Down 3.2%

The stock has a market capitalization of $414.54 billion, a price-to-earnings ratio of 49.03, a price-to-earnings-growth ratio of 1.37 and a beta of 1.61. 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 business’s 50-day moving average is $559.47 and its two-hundred day moving average is $438.49.

Applied Materials (NASDAQ:AMAT) last posted its quarterly 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. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter last year, the firm earned $2.39 earnings per share. The business’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts anticipate that Applied Materials, Inc. will post 12.17 EPS for the current year.

Applied Materials Announces Dividend

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

Insider Activity

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction dated 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 sale, the senior vice president owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the sale, the insider owned 356,642 shares of the company’s stock, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 278,088 shares of company stock worth $169,654,805. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several hedge funds have recently made changes to their positions in AMAT. Capital Research Global Investors increased its position 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 position in shares of Applied Materials in the 4th quarter worth approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of 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 acquiring an additional 7,856,576 shares during the last quarter. Auto Owners Insurance Co boosted its position in shares of Applied Materials by 25,824.4% during 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. Finally, Coatue Management LLC increased its holdings in Applied Materials by 78.7% in the 4th quarter. Coatue Management LLC now owns 5,984,332 shares of the manufacturing equipment provider’s stock valued at $1,537,913,000 after purchasing an additional 2,635,284 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.