Royal Bank Of Canada Reaffirms “Outperform” Rating for Applied Materials (NASDAQ:AMAT)

Applied Materials (NASDAQ:AMAT)‘s stock had its “outperform” rating restated by analysts at Royal Bank Of Canada in a research note issued on Wednesday, Benzinga reports. They presently have a $600.00 price target on the manufacturing equipment provider’s stock. Royal Bank Of Canada’s target price would suggest a potential upside of 31.45% from the stock’s previous close.

A number of other research firms have also weighed in on AMAT. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $605.00 price objective (down from $680.00) on shares of Applied Materials in a research note on Friday, August 14th. Jefferies Financial Group raised their price target on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research report on Friday, June 26th. William Blair assumed coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating for the company. Erste Group Bank lowered shares of Applied Materials from a “buy” rating to a “hold” rating in a report on Wednesday, August 5th. Finally, Citigroup reaffirmed a “buy” rating and issued a $710.00 price objective (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $640.20.

Applied Materials Stock Down 1.7%

Shares of NASDAQ AMAT traded down $7.80 during trading on Wednesday, reaching $456.44. The company had a trading volume of 1,242,369 shares, compared to its average volume of 7,825,523. Applied Materials has a 12-month low of $203.40 and a 12-month high of $739.67. The stock has a market cap of $362.23 billion, a PE ratio of 39.38, a P/E/G ratio of 1.38 and a beta of 1.60. The business’s 50-day moving average is $486.82 and its 200 day moving average is $484.20. 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 posted its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. The firm had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. Applied Materials’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities analysts forecast that Applied Materials will post 12.79 earnings per share for the current fiscal year.

Insider Transactions at Applied Materials

In related news, CAO Adam Sanders sold 725 shares of the firm’s stock in a transaction that occurred on 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 in the company, valued at approximately $1,732,245.36. This trade represents a 18.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares in the company, valued at $61,637,780.25. This represents a 5.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 9,225 shares of company stock worth $4,454,181 over the last three months. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of AMAT. First Citizens Bank & Trust Co. grew its holdings in shares of Applied Materials by 6.5% in the third quarter. First Citizens Bank & Trust Co. now owns 61,377 shares of the manufacturing equipment provider’s stock worth $31,387,000 after acquiring an additional 3,740 shares during the period. JM2 Capital Inc. lifted its holdings in Applied Materials by 12.0% in the third quarter. JM2 Capital Inc. now owns 2,563 shares of the manufacturing equipment provider’s stock valued at $1,311,000 after acquiring an additional 275 shares during the period. XY Planning Network Inc. lifted its holdings in Applied Materials by 26.3% in the third quarter. XY Planning Network Inc. now owns 413 shares of the manufacturing equipment provider’s stock valued at $211,000 after acquiring an additional 86 shares during the period. Salem Investment Counselors Inc. boosted its position in Applied Materials by 19.4% in the third quarter. Salem Investment Counselors Inc. now owns 1,381 shares of the manufacturing equipment provider’s stock worth $706,000 after purchasing an additional 224 shares during the last quarter. Finally, Signal Advisors Wealth LLC boosted its position in Applied Materials by 1.5% in the third quarter. Signal Advisors Wealth LLC now owns 2,634 shares of the manufacturing equipment provider’s stock worth $1,347,000 after purchasing an additional 39 shares during the last quarter. 80.56% of the stock is owned by institutional investors.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Strong earnings record and analyst optimism: Applied Materials has delivered its fifth consecutive earnings beat, while Cantor Fitzgerald maintained an $850 price target, implying substantial potential upside from recent levels. Another Wall Street analysis characterized the recent selloff as a potential disconnect between operating performance and valuation. Applied Materials Could Nearly Double Within 12 Months Cantor Fitzgerald Maintains Applied Materials Price Target
• Positive Sentiment: AI investment and EPIC research center: The company unveiled its planned $5 billion EPIC Center in Silicon Valley, bringing together chipmakers including Intel, Micron, SK Hynix and Samsung to accelerate semiconductor process and equipment development. Applied Ventures also invested in Flexcompute’s physics-focused AI platform, aimed at speeding chip design and materials research. Applied Materials Unveils EPIC Center Applied Materials Invests in Flexcompute
• Positive Sentiment: Long-term growth opportunities: Investor-day materials highlighted expected gains in optical inspection, eBeam equipment and semiconductor services, supported by continued AI-related wafer-fabrication demand and partnerships with leading chip manufacturers. Applied Materials Long-Term Growth Presentation
• Neutral Sentiment: Valuation remains a key debate: AMAT trades at a premium earnings multiple, so investors are demanding evidence that future growth will justify the valuation. Erste Group modestly raised its FY2027 EPS estimate but retained a “Hold” rating. Applied Materials Valuation and Growth Analysis
• Negative Sentiment: Investor-day guidance disappointed: The stock faced renewed selling after Applied Materials provided what some investors viewed as uncertain 2030 guidance and did not fully quantify the long-term payoff from its initiatives. The shares also approached an important technical support level. Why Applied Materials Sank
• Negative Sentiment: Semiconductor-sector selling pressure: Investors took profits after a strong year for AI-linked chip stocks. A sharp decline in South Korea’s KOSPI and broader technology weakness intensified pressure on Applied Materials, Lam Research and KLA. Semiconductor Equipment Stocks Sell Off

Applied Materials Company Profile

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.