Applied Materials (NASDAQ:AMAT) Shares Up 1.6% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price traded up 1.6% during trading on Thursday . The stock traded as high as $576.49 and last traded at $562.80. 5,647,829 shares traded hands during trading, a decline of 32% from the average daily volume of 8,281,805 shares. The stock had previously closed at $553.92.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials is still viewed favorably versus a peer in advanced packaging, with commentary highlighting its AI-related packaging exposure, broad chipmaking portfolio, and high-margin services as reasons it may be a safer long-term bet. AMAT vs. Q: Which Advanced Packaging Stock is a Safer Bet Right Now?
• Positive Sentiment: Analysts and market commentary continue to point to AI-led semiconductor demand, with Applied Materials repeatedly cited as one of the stocks benefiting from ongoing chip investment and stronger equipment spending. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Positive Sentiment: Applied Materials announced it will report fiscal third-quarter 2026 results on August 13, and recent previews suggest analysts expect another double-digit earnings increase, which can support sentiment ahead of the print. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Neutral Sentiment: The company’s short-interest update appears to be data-noisy, showing zero shares outstanding and no meaningful days-to-cover signal, so it is unlikely to be a real trading driver.
• Neutral Sentiment: Applied Materials remains part of a broader semiconductor sector that is experiencing profit-taking and valuation-driven consolidation after a powerful AI rally, which is weighing on sentiment across the group. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing?
• Negative Sentiment: The pullback in semiconductor names suggests investors are locking in gains and reassessing high expectations, which is pressuring AMAT along with the rest of the sector despite solid fundamentals.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on AMAT shares. HC Wainwright set a $850.00 price target on Applied Materials in a research report on Monday, June 29th. Seaport Research Partners assumed coverage on Applied Materials in a research note on Monday, May 4th. They issued a “buy” rating and a $500.00 target price on the stock. Raymond James Financial set a $650.00 target price on Applied Materials in a report on Wednesday, June 10th. Royal Bank Of Canada boosted their target price on Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Finally, Erste Group Bank upgraded shares of Applied Materials from a “hold” rating to a “buy” rating in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, Applied Materials presently has an average rating of “Moderate Buy” and an average target price of $593.84.

Applied Materials Trading Down 4.7%

The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $425.76 billion, a P/E ratio of 50.35, a price-to-earnings-growth ratio of 1.43 and a beta of 1.57. The company has a fifty day simple moving average of $544.21 and a two-hundred day simple moving average of $423.10.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the company earned $2.39 earnings per share. The company’s revenue for the quarter 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, sell-side analysts expect that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Announces Dividend

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. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is 19.91%.

Insider Transactions at Applied Materials

In other news, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares of the company’s stock, valued at $1,006,503,625. This represents a 4.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the sale, the insider owned 356,642 shares in the company, valued at approximately $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently added to or reduced their stakes in the company. Financial Freedom LLC bought a new position in shares of Applied Materials during the first quarter worth about $28,000. Elevation Wealth Partners LLC lifted its stake in Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock valued at $67,000 after acquiring an additional 24 shares in the last quarter. Cornerstone Financial Management LLC bought a new stake in Applied Materials in the 4th quarter valued at approximately $25,000. Whipplewood Advisors LLC boosted its position in Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after acquiring an additional 70 shares during the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the 4th quarter worth approximately $26,000. Institutional investors 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.