Applied Materials (NASDAQ:AMAT) Trading 1.4% Higher – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) shot up 1.4% during trading on Thursday . The company traded as high as $344.60 and last traded at $341.34. 7,180,453 shares changed hands during trading, a decline of 7% from the average session volume of 7,748,520 shares. The stock had previously closed at $336.75.

Key Applied Materials News

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

• Positive Sentiment: Mizuho upgraded AMAT to Outperform and raised its price target to $370, citing accelerating WFE (wafer fab equipment) spending as a multi‑year tailwind. Mizuho Upgrades Applied Materials (AMAT) to Outperform on Global WFE Tailwinds
• Positive Sentiment: Key analysts (including KeyBanc and others cited across outlets) have raised price targets (KeyBanc to $380) and highlighted AMAT’s diversified position in deposition/etch and benefits from increased chip manufacturing intensity. Mizuho upgrades Applied Materials to Outperform as WFE spending accelerates
• Positive Sentiment: Several buy‑side pieces (Seeking Alpha, analyst blogs) call AMAT an attractive buy into the upcoming Q1 report, pointing to semiconductor momentum and durable multi‑year tailwinds. Applied Materials: Attractive Buy Ahead Of The Q1 2026 Report
• Neutral Sentiment: Options activity shows large institutional/speculative positioning (“whales”), which can amplify moves in either direction but doesn’t guarantee fundamental change. Traders should watch open interest and expiries. This Is What Whales Are Betting On Applied Materials
• Neutral Sentiment: Industry discussion is underway about AMAT’s ability to challenge ASML at the high end — a long‑term strategic theme that could support upside but is uncertain and execution‑dependent. Can AMAT Break ASML’s Monopoly?
• Negative Sentiment: Zacks highlights rising trade and cost pressures that could offset semiconductor momentum — a nearer‑term risk to margins and guidance that may be pressuring the stock today. Applied Materials leads Zacks’ latest Analyst Blog
• Negative Sentiment: Technical/valuation factors: AMAT has run sharply higher over the past year and now trades at an elevated multiple (PE and PEG above historical norms). Higher trading volume on the pullback suggests profit‑taking and short‑term selling pressure. (Background market data.)

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $220.00 to $260.00 and gave the company an “overweight” rating in a report on Friday, November 14th. Jefferies Financial Group upped their price objective on Applied Materials from $260.00 to $360.00 and gave the stock a “buy” rating in a report on Monday, December 15th. Morgan Stanley reiterated an “overweight” rating and issued a $273.00 target price on shares of Applied Materials in a report on Tuesday, December 2nd. Deutsche Bank Aktiengesellschaft upgraded Applied Materials from a “hold” rating to a “buy” rating and upped their price target for the stock from $275.00 to $390.00 in a research note on Friday, January 23rd. Finally, Barclays raised Applied Materials from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $250.00 to $360.00 in a research note on Thursday, January 15th. Twenty-four research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus price target of $298.14.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The stock has a fifty day simple moving average of $281.15 and a two-hundred day simple moving average of $227.03. The stock has a market cap of $255.83 billion, a PE ratio of 37.13, a PEG ratio of 3.06 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. The business had revenue of $6.80 billion for the quarter, compared to analysts’ expectations of $6.68 billion. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period in the previous year, the company posted $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. Equities analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, February 19th. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio (DPR) is currently 21.20%.

Insider Transactions at Applied Materials

In other news, CAO Adam Sanders sold 609 shares of the stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $255.53, for a total transaction of $155,617.77. Following the completion of the transaction, the chief accounting officer directly owned 4,413 shares in the company, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Teri A. Little sold 4,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the sale, the senior vice president directly owned 84,351 shares of the company’s stock, valued at $20,095,782.24. The trade was a 4.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,609 shares of company stock valued at $2,044,898 in the last three months. 0.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Godsey & Gibb Inc. grew its stake in Applied Materials by 2.6% in the fourth quarter. Godsey & Gibb Inc. now owns 1,298 shares of the manufacturing equipment provider’s stock worth $334,000 after purchasing an additional 33 shares in the last quarter. Family Capital Management Inc. lifted its holdings in Applied Materials by 0.8% during the 4th quarter. Family Capital Management Inc. now owns 4,227 shares of the manufacturing equipment provider’s stock worth $1,086,000 after buying an additional 33 shares during the last quarter. Traveka Wealth LLC grew its position in shares of Applied Materials by 2.6% in the 4th quarter. Traveka Wealth LLC now owns 1,404 shares of the manufacturing equipment provider’s stock worth $361,000 after acquiring an additional 36 shares in the last quarter. Highline Wealth Partners LLC increased its holdings in shares of Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares during the last quarter. Finally, Bartlett & CO. Wealth Management LLC increased its holdings in shares of Applied Materials by 0.9% in the 4th quarter. Bartlett & CO. Wealth Management LLC now owns 4,096 shares of the manufacturing equipment provider’s stock valued at $1,053,000 after acquiring an additional 38 shares during the last quarter. 80.56% of the stock is currently owned by 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.