Applied Materials, Inc. (NASDAQ:AMAT) Given Average Rating of “Moderate Buy” by Brokerages

Applied Materials, Inc. (NASDAQ:AMAT) has received an average rating of “Moderate Buy” from the thirty-four research firms that are covering the firm, Marketbeat reports. Six analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price objective among analysts that have issued ratings on the stock in the last year is $593.8387.

Several research firms recently weighed in on AMAT. Royal Bank Of Canada raised their price objective on Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. TD Cowen raised their price objective on shares of Applied Materials from $525.00 to $700.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Bank of America lifted their target price on shares of Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Finally, B. Riley Financial boosted their target price on shares of Applied Materials from $550.00 to $790.00 and gave the stock a “buy” rating in a report on Friday, June 26th.

Applied Materials Price Performance

AMAT stock opened at $562.80 on Friday. The company has a 50 day simple moving average of $542.22 and a 200 day simple moving average of $422.30. The stock has a market cap of $446.84 billion, a price-to-earnings ratio of 52.85, a P/E/G ratio of 1.41 and a beta of 1.57. Applied Materials has a 1 year low of $154.46 and a 1 year high of $739.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company’s quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts anticipate that Applied Materials will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s payout ratio is presently 19.91%.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Analysts expect Applied Materials’ upcoming fiscal third-quarter report on Aug. 13 to show double-digit earnings growth, reinforcing confidence in the company’s near-term fundamentals. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Positive Sentiment: Applied Materials was highlighted as a beneficiary of AI-driven semiconductor spending, with the sector rally and broader enthusiasm for chip equipment supporting sentiment around AMAT. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Positive Sentiment: News that TSMC plans major expansion in Arizona and may raise chip prices helped boost Applied Materials, since more fab spending can translate into stronger equipment demand. Applied Materials (AMAT) Jumps On TSMC Expansion As Fair Value Debate Stays Open
• Positive Sentiment: The company announced it will report fiscal third-quarter 2026 results on Aug. 13, keeping investor focus on the next catalyst for the stock. Applied Materials to Report Fiscal Third Quarter 2026 Results on Aug. 13, 2026
• Neutral Sentiment: Several articles framed AMAT as a quality “wide-moat” semiconductor name and a stock to watch, but these pieces were more thematic than immediately market-moving. Top Wide-Moat Stocks to Invest in for Sustainable Growth
• Neutral Sentiment: Technical commentary suggested the stock had been under short-term pressure before rebounding, indicating volatility rather than a clear fundamental shift. History Says Applied Materials Stock Looks Ripe for Rebound

Insider Buying and Selling

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 278,088 shares of company stock valued at $169,654,805. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in Applied Materials by 0.4% in 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 buying an additional 330,197 shares during the period. Capital Research Global Investors grew its holdings in Applied Materials by 119.8% during the 4th quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Morgan Stanley grew its holdings in Applied Materials by 3.4% during the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after acquiring an additional 373,012 shares during the period. Norges Bank bought a new position in shares of Applied Materials in the 4th quarter worth about $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Applied Materials by 17.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock worth $2,746,769,000 after acquiring an additional 1,558,749 shares in the last quarter. 80.56% of the stock is owned by institutional investors.

Applied Materials Company Profile

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.