Applied Materials (NASDAQ:AMAT) Trading Up 2.2% – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 2.2% on Friday . The stock traded as high as $545.94 and last traded at $539.14. Approximately 4,462,818 shares were traded during mid-day trading, a decline of 46% from the average session volume of 8,210,830 shares. The stock had previously closed at $527.48.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials is positioned to benefit from expanding AI chip production, including potential semiconductor-fabrication and advanced-packaging demand tied to the proposed Tesla-SpaceX “terafab” buildout. Tesla-SpaceX Terafab Bet: 4 Chip Equipment Stocks That Could Benefit
• Positive Sentiment: Broader semiconductor sales continue to benefit from AI infrastructure spending, supporting the outlook for equipment suppliers such as AMAT. Citi analysts also identified Applied Materials as a preferred way to participate in an early-stage AI upcycle. Semiconductor Sales Continue to Grow on AI Optimism: 4 Stocks to Grab
• Positive Sentiment: Wall Street expects earnings growth, with bullish commentary pointing to demand for deposition, etch, CMP, memory, logic and advanced-packaging equipment. Consensus price targets imply additional upside if the company delivers a strong outlook. Applied Materials Reports Next Week: Wall Street Expects Earnings Growth
• Neutral Sentiment: Options markets are pricing a potentially large earnings-related move, making the August 13 report a key near-term catalyst. The company’s latest quarter exceeded EPS and revenue expectations, but investors will focus on forward guidance and whether AI demand is accelerating. Is the Options Market Underestimating Applied Materials Stock’s Earnings Move?
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold, while a separate report linked recent weakness to an analyst downgrade. The more cautious view could limit gains ahead of earnings. Applied Materials Rating Lowered to Hold at Erste Group Bank
• Negative Sentiment: Investor Michael Burry’s reported short position in Applied Materials and warnings of a broad market reversal have increased scrutiny of highly valued AI-related stocks. As Burry Targets AI Chip Names, Is Applied Materials Still Undervalued?

Wall Street Analyst Weigh In

Several research firms recently commented on AMAT. Zacks Research raised Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. Mizuho upped their target price on shares of Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. Needham & Company LLC raised their price target on shares of Applied Materials from $530.00 to $740.00 and gave the company a “buy” rating in a report on Friday, July 10th. Wolfe Research lifted their price target on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of Applied Materials in a research report on Wednesday, June 24th. One equities research 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. According to data from MarketBeat.com, Applied Materials presently has a consensus rating of “Moderate Buy” and a consensus target price of $603.23.

Applied Materials Trading Up 2.2%

The stock has a 50 day simple moving average of $557.69 and a 200-day simple moving average of $437.00. The firm has a market capitalization of $428.06 billion, a P/E ratio of 50.62, a P/E/G ratio of 1.35 and a beta of 1.61. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business’s quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts forecast that Applied Materials, Inc. will post 12.17 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.53 dividend. The ex-dividend date is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Insider Buying and Selling at Applied Materials

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director owned 40,559 shares in the company, valued at $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 278,088 shares of company stock worth $169,654,805. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Cornerstone Financial Management LLC bought a new stake in Applied Materials during the 4th quarter worth approximately $25,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the fourth quarter worth $26,000. Financial Freedom LLC purchased a new stake in shares of Applied Materials in the first quarter worth $28,000. Joseph Group Capital Management bought a new stake in shares of Applied Materials during the 4th quarter valued at $31,000. Finally, Dogwood Wealth Management LLC lifted its stake in shares of Applied Materials by 52.4% during the 4th quarter. Dogwood Wealth Management LLC now owns 128 shares of the manufacturing equipment provider’s stock valued at $33,000 after buying an additional 44 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other 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.