Applied Materials (NASDAQ:AMAT) Stock Price Up 8.9% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) shares traded up 8.9% during trading on Wednesday . The company traded as high as $389.30 and last traded at $385.72. 7,558,570 shares were traded during mid-day trading, a decline of 0% from the average session volume of 7,593,124 shares. The stock had previously closed at $354.31.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials announced two new deposition systems (Precision™ Selective Nitride PECVD and Trillium™ ALD) designed for 2nm and beyond; company says leading foundry‑logic customers are already using the tools — this directly ties AMAT to the next wave of AI/logic chip investment. Applied Materials Introduces Deposition Systems for Angstrom‑Era Logic Chips
• Positive Sentiment: News outlets report the new gear is purpose‑built for AI chips and smaller atomic‑scale features, and market reaction was immediate — coverage notes the product launches as the catalyst for today’s rally. Applied Materials Debuts New Gear For Making AI Chips
• Positive Sentiment: Multiple financial outlets highlight the two new deposition systems as strategic for the “angstrom era,” calling AMAT a core beneficiary of increased foundry/logic capex for AI — reinforcing buy narratives from analysts. Applied Materials Just Launched a New Chipmaking System
• Positive Sentiment: Goldman Sachs named AMAT a top semiconductor pick; Cantor Fitzgerald has an Overweight and recently raised its price target (supportive analyst coverage that can sustain buying momentum). Goldman Sachs Names Teradyne, Applied Materials, AMD as Top Semiconductor Picks
• Neutral Sentiment: Technical and market‑context pieces note that easing geopolitical tensions and broader AI hardware demand helped the rally; these factors are supportive but not company‑specific. What’s Going On With Applied Materials Stock Wednesday?
• Negative Sentiment: Valuation/positioning risk: commentary asks whether AMAT is already priced for perfection after a large one‑year run (articles discuss a ~177% one‑year surge and question remaining upside), implying higher volatility and pullback risk for investors buying after the move. Is It Too Late To Consider Applied Materials After 177% One Year Surge?

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Morgan Stanley upped their target price on Applied Materials from $420.00 to $432.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 25th. KGI Securities upgraded Applied Materials to an “outperform” rating and set a $425.00 target price on the stock in a research note on Friday, February 13th. Weiss Ratings restated a “buy (b-)” rating on shares of Applied Materials in a research note on Friday, March 27th. Erste Group Bank upgraded Applied Materials to a “hold” rating in a research note on Tuesday, March 24th. Finally, Jefferies Financial Group upped their target price on Applied Materials from $260.00 to $360.00 and gave the stock a “buy” rating in a research note on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Stock Up 8.9%

The company has a market cap of $306.11 billion, a price-to-earnings ratio of 39.48, a PEG ratio of 1.55 and a beta of 1.64. The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. The business has a fifty day moving average of $348.22 and a two-hundred day moving average of $285.11.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17. The company had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.Applied Materials’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, equities analysts anticipate that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, May 21st. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is currently 21.70%.

Insider Buying and Selling

In related news, Director Judy Bruner sold 3,969 shares of the company’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the completion of the transaction, the director owned 28,589 shares of the company’s stock, valued at approximately $10,778,624.78. This represents a 12.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Brice Hill sold 5,000 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the completion of the transaction, the chief financial officer directly owned 138,565 shares of the company’s stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 12,003 shares of company stock valued at $4,484,189. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock valued at $19,731,523,000 after acquiring an additional 330,197 shares during the last quarter. State Street Corp raised its holdings in shares of Applied Materials by 1.0% during the second quarter. State Street Corp now owns 38,920,984 shares of the manufacturing equipment provider’s stock valued at $7,125,265,000 after acquiring an additional 391,540 shares during the last quarter. Capital Research Global Investors raised its holdings 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. Alliancebernstein L.P. raised its holdings in shares of Applied Materials by 72.5% during the second quarter. Alliancebernstein L.P. now owns 13,564,120 shares of the manufacturing equipment provider’s stock valued at $2,483,183,000 after acquiring an additional 5,700,349 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in shares of Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock valued at $2,563,376,000 after acquiring an additional 3,583,751 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.