Applied Materials (NASDAQ:AMAT) Stock Price Up 8.6% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) shares rose 8.6% on Monday . The stock traded as high as $497.71 and last traded at $492.17. Approximately 9,606,172 shares changed hands during trading, an increase of 29% from the average daily volume of 7,425,270 shares. The stock had previously closed at $453.01.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials is being viewed as a key beneficiary of AI-related chip factory spending, with recent commentary citing strong demand across logic, memory and packaging, plus upbeat Wall Street notes and price-target increases. Applied Materials jumps 6.8% as AI-driven equipment demand and analyst optimism lift shares
• Positive Sentiment: Citi’s latest semiconductor note said the recent pullback in chip stocks looks healthy, reinforcing a constructive view on the sector and supporting sentiment for AMAT alongside other equipment names. 3 chip stocks to buy after recent SOX pullback: Citi
• Neutral Sentiment: New articles questioned whether AMAT is still a buy after its 167% one-year surge, suggesting valuation may be getting stretched even as business momentum remains strong. Should You Buy, Sell or Hold AMAT Stock After a 167% Rise in a Year?
• Neutral Sentiment: Coverage comparing AMAT’s performance with other computer and technology stocks this year was mainly a relative-performance update, with no new fundamental catalyst. Are Computer and Technology Stocks Lagging Applied Materials (AMAT) This Year?
• Negative Sentiment: Some bearish signals are showing up in the background, including a reported CFO stock sale and ongoing insider selling, which could temper enthusiasm if investors focus on valuation and insider activity. Insider Selling: Applied Materials (NASDAQ:AMAT) CFO Sells $1,247,150.00 in Stock

Wall Street Analysts Forecast Growth

AMAT has been the subject of several recent research reports. Summit Insights upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Friday, February 13th. Morgan Stanley restated an “equal weight” rating and set a $502.00 price objective (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. KeyCorp raised their target price on shares of Applied Materials from $450.00 to $550.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Finally, Stifel Nicolaus set a $530.00 price target on Applied Materials in a research report on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $470.13.

Applied Materials Trading Up 8.6%

The company has a market cap of $390.76 billion, a P/E ratio of 46.21, a PEG ratio of 1.27 and a beta of 1.67. The business has a fifty day moving average price of $408.94 and a 200-day moving average price of $343.11. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the company posted $2.39 earnings per share. Applied Materials’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, analysts forecast that Applied Materials, Inc. will post 12.02 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be issued a dividend of $0.53 per share. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s payout ratio is 19.91%.

Insider Buying and Selling

In other news, CAO Adam Sanders sold 268 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $434.22, for a total transaction of $116,370.96. Following the sale, the chief accounting officer directly owned 4,280 shares of the company’s stock, valued at approximately $1,858,461.60. This represents a 5.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Judy Bruner sold 1,128 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $450.00, for a total transaction of $507,600.00. Following the sale, the director directly owned 26,544 shares of the company’s stock, valued at $11,944,800. This represents a 4.08% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 53,896 shares of company stock valued at $27,135,121. 0.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Pine Valley Investments Ltd Liability Co increased its stake in shares of Applied Materials by 10.9% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 29,297 shares of the manufacturing equipment provider’s stock valued at $10,013,000 after purchasing an additional 2,890 shares during the last quarter. First Nebraska Trust Co bought a new stake in shares of Applied Materials during the 1st quarter worth $29,488,000. Foguth Wealth Management LLC. acquired a new stake in Applied Materials in the first quarter valued at about $234,000. Financial Solutions Advisory Group Inc. acquired a new stake in Applied Materials in the first quarter valued at about $885,000. Finally, Krane Financial Solutions LLC bought a new position in Applied Materials in the first quarter valued at about $713,000. 80.56% of the stock is 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.