Applied Materials (NASDAQ:AMAT) Trading Up 4.3% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares rose 4.3% during trading on Wednesday . The company traded as high as $553.75 and last traded at $548.15. Approximately 6,732,141 shares were traded during trading, a decline of 18% from the average session volume of 8,181,155 shares. The stock had previously closed at $525.61.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Investors are focusing on the company’s role as a “picks-and-shovels” supplier to the AI-chip industry. Strong data-center investment and demand for advanced chips could support orders for Applied Materials’ deposition, etch and inspection equipment. Is Applied Materials the Picks-and-Shovels Play on AI Chips?
• Positive Sentiment: Analysts expect another strong quarter, with previews citing approximately $9 billion in revenue, up about 23% year over year, and adjusted earnings of roughly $3.39 per share. Expectations for record revenue are raising the potential for a positive surprise if AI-related demand and margins exceed forecasts. Applied Materials Earnings Preview
• Positive Sentiment: Applied Materials’ EPIC Center is expanding its semiconductor research network through a collaboration with UC Berkeley. The partnership could accelerate process innovation and commercialization, supporting the company’s longer-term competitive position. UC Berkeley to Join Applied Materials’ EPIC Center
• Neutral Sentiment: The stock has recovered strongly this year but remains well below its June peak, leaving Thursday’s results and management outlook as the next major catalyst. Options traders reportedly anticipate a substantial post-earnings move. Expected Post-Earnings Move
• Negative Sentiment: Valuation and competitive risks are limiting analyst enthusiasm. William Blair initiated coverage with a “market perform” rating, while another analyst maintained a Hold, citing strong AI fundamentals but less upside after the stock’s rally and elevated valuation. Analyst Maintains Hold on Applied Materials

Wall Street Analysts Forecast Growth

AMAT has been the topic of several recent research reports. Seaport Research Partners initiated coverage on shares of Applied Materials in a research report on Monday, May 4th. They issued a “buy” rating and a $500.00 price objective on the stock. Deutsche Bank Aktiengesellschaft raised their target price on shares of Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a report on Friday, May 15th. Susquehanna upped their price target on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. Argus increased their price target on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research report on Tuesday, May 19th. Finally, William Blair began coverage on shares of Applied Materials in a research note on Tuesday. They set a “market perform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus price target of $603.23.

Applied Materials Trading Up 4.3%

The business has a 50-day moving average of $561.46 and a 200 day moving average of $441.34. The stock has a market cap of $435.21 billion, a PE ratio of 51.47, a PEG ratio of 1.32 and a beta of 1.61. 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 (NASDAQ:AMAT) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period in the prior year, the firm earned $2.39 EPS. The firm’s quarterly revenue 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 research analysts predict that Applied Materials, Inc. will post 12.17 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently disclosed 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 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is presently 19.91%.

Insider Transactions at Applied Materials

In other Applied Materials news, CEO Gary E. Dickerson sold 71,727 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director 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 SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock valued at $169,654,805 in the last ninety days. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several institutional investors have recently bought and sold shares of the business. Evolve Private Wealth LLC grew its stake in 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 last quarter. WealthPlan Investment Management LLC acquired a new position in Applied Materials during the 4th quarter worth $1,082,000. Ameritas Advisory Services LLC boosted its holdings 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 valued at $790,000 after acquiring an additional 1,990 shares during the period. Assetmark Inc. grew its position in shares of Applied Materials by 9.3% in the fourth quarter. Assetmark Inc. now owns 376,513 shares of the manufacturing equipment provider’s stock valued at $96,760,000 after purchasing an additional 32,136 shares during the last quarter. Finally, Handelsbanken Fonder AB grew its position in shares of Applied Materials by 29.6% in the second quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider’s stock valued at $334,521,000 after purchasing an additional 105,776 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.