Applied Materials (NASDAQ:AMAT) Trading Up 4.4% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) was up 4.4% during trading on Monday . The stock traded as high as $468.51 and last traded at $464.24. Approximately 9,153,488 shares traded hands during trading, an increase of 14% from the average daily volume of 8,049,521 shares. The stock had previously closed at $444.57.

Key Applied Materials News

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

• Positive Sentiment: AI infrastructure opportunity: Analysts highlight Applied Materials as a “picks-and-shovels” beneficiary of AI because its equipment is used to manufacture advanced chips. The company’s broad portfolio and exposure to leading-edge semiconductor investment could support long-term growth. Nvidia and AMD Get the Headlines. The Real AI Winners Might Be Applied Materials and Lam Research.
• Positive Sentiment: Services provides recurring revenue: Applied Global Services grew 22% year over year in the latest quarter, helping diversify AMAT beyond cyclical equipment sales and potentially cushioning the company when semiconductor-factory spending slows. What Are AMAT Stock Bears Missing?
• Positive Sentiment: India expansion: Applied Materials plans to invest $5 billion in India over the next decade, expanding research, supply-chain, and workforce operations as the country develops its semiconductor-manufacturing ecosystem. The investment could strengthen AMAT’s regional position and create future demand opportunities. Applied Materials Commits $5 Billion to India as Chip Manufacturing Expands
• Positive Sentiment: More constructive analyst views: Recent commentary includes a rating upgrade and identifies AMAT among AI-related stocks with meaningful potential upside, supporting sentiment after the stock’s recent weakness. Applied Materials: Opportunity Is Brewing Again

Wall Street Analyst Weigh In

AMAT has been the subject of several recent analyst reports. Truist Financial set a $575.00 price objective on shares of Applied Materials in a research report on Thursday, May 28th. Sanford C. Bernstein raised their price target on Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Erste Group Bank downgraded Applied Materials from a “buy” rating to a “hold” rating in a report on Wednesday, August 5th. HSBC reiterated a “buy” rating and issued a $683.00 price objective on shares of Applied Materials in a report on Monday, July 27th. Finally, Stifel Nicolaus raised their target price on Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $658.45.

Applied Materials Price Performance

The firm has a market capitalization of $368.28 billion, a price-to-earnings ratio of 39.87, a P/E/G ratio of 1.29 and a beta of 1.60. The company has a fifty day moving average price of $493.48 and a two-hundred day moving average price of $467.79. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) 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 business had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. During the same period last year, the firm posted $2.48 earnings per share. The company’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.78 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s dividend payout ratio is presently 18.28%.

Insider Transactions at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of the firm’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 of the company’s stock, valued at $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Gary E. Dickerson sold 20,000 shares of the business’s stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the transaction, the chief executive officer owned 1,599,843 shares in the company, valued at $1,176,236,570.46. This trade represents a 1.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 86,821 shares of company stock worth $59,609,471. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently modified their holdings of AMAT. Harborfront Financial Group LLC acquired a new stake in Applied Materials during the second quarter valued at approximately $27,000. Orion Capital Management LLC acquired a new position in Applied Materials in the second quarter worth approximately $33,000. Highland Investment Advisors LLC acquired a new position in Applied Materials in the second quarter worth approximately $33,000. BOK Financial Private Wealth Inc. bought a new position in shares of Applied Materials in the second quarter valued at $41,000. Finally, Financial Freedom LLC bought a new position in shares of Applied Materials in the first quarter valued at $28,000. 80.56% of the stock is owned by institutional investors and hedge funds.

About Applied Materials

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.