Applied Materials (NASDAQ:AMAT) Shares Up 3.4% on Analyst Upgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT) traded up 3.4% during mid-day trading on Tuesday after Erste Group Bank upgraded the stock to a hold rating. The stock traded as high as $379.99 and last traded at $373.99. 6,306,675 shares were traded during trading, a decline of 20% from the average session volume of 7,855,007 shares. The stock had previously closed at $361.79.

A number of other brokerages also recently weighed in on AMAT. B. Riley Financial restated a “buy” rating and set a $450.00 price objective (up from $400.00) on shares of Applied Materials in a research report on Friday, February 13th. UBS Group set a $430.00 target price on shares of Applied Materials in a research note on Friday, February 13th. Citigroup increased their price target on Applied Materials from $400.00 to $420.00 and gave the company a “buy” rating in a report on Friday, February 13th. Mizuho raised their price target on Applied Materials from $370.00 to $410.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. Finally, Needham & Company LLC lifted their price objective on Applied Materials from $390.00 to $440.00 and gave the stock a “buy” rating in a report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $363.46.

Insiders Place Their Bets

In other news, CFO Brice Hill sold 5,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the completion of the sale, the chief financial officer 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 sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Judy Bruner sold 3,969 shares of the firm’s stock in a transaction on 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 directly owned 28,589 shares in the company, valued at approximately $10,778,624.78. This represents a 12.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 12,003 shares of company stock worth $4,484,189. Company insiders own 0.30% of the company’s stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Record DRAM bookings, new tools and a dividend hike underpin bullish fundamentals — recent coverage highlights AMAT’s record DRAM tools revenue, new 2nm GAA tool introductions, a 15% dividend increase and logistics/AI supply‑chain initiatives that lifted investor sentiment. Applied Materials (AMAT) Is Up 5.7% After Record DRAM Tools, Dividend Hike And AI Supply-Chain Push
• Positive Sentiment: Improving wafer‑fab spending visibility supported the recent run — investor letters and coverage point to clearer capex plans at chipmakers, a tailwind for AMAT’s equipment backlog and near‑term revenue visibility. Applied Materials (AMAT) Surged on Improving Wafer-Fab Spending Visibility
• Positive Sentiment: Longer‑term growth drivers: HBM and advanced packaging exposure could accelerate revenues as AI chip designs shift — analysts note AMAT is positioned to benefit from these structural trends. Can HBM and Packaging Demand Accelerate AMAT’s Revenue Growth?
• Neutral Sentiment: Macro / policy support remains constructive — coverage notes new U.S. semiconductor initiatives and logistics partnerships that could aid global buildouts but timing and funding execution remain uncertain. US Semiconductor Push Adds New Thread To Applied Materials Story
• Neutral Sentiment: Analyst views and comparisons: AMAT receives generally strong analyst ratings and is favorably compared with ASML on upside, but valuation gaps persist — useful for longer‑term allocation decisions rather than immediate catalysts. ASML vs. Applied Materials (AMAT): Which Chip Equipment Stock Offers Better Value in 2026?
• Neutral Sentiment: Market structure / ETFs: commentary notes tech earnings are improving while some ETFs (QQQM) lag, indicating possible rotation scenarios that could either help or hurt AMAT depending on flows. As Tech Earnings Grow, This ETF Still Hasn’t Caught Up (AMAT)
• Neutral Sentiment: Erste Group upgraded AMAT to “hold” (minor near‑term signal) — an incremental data point but not a strong catalyst after recent positive releases. Zacks.com
• Negative Sentiment: Sector selloff/profit‑taking pushed shares down today — coverage highlights a broader slump hitting Teradyne, Intel, KLA and Semtech alongside AMAT, suggesting market‑wide forces rather than company‑specific news drove the decline. Teradyne, Applied Materials, Intel, KLA Corporation, and Semtech shares plummet, what you need to know

Institutional Inflows and Outflows

Institutional 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 bought a new position in shares of Applied Materials in the fourth quarter worth approximately $26,000. Highline Wealth Partners LLC increased its stake in shares of Applied Materials by 48.7% in the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after purchasing an additional 38 shares in the last quarter. Joseph Group Capital Management purchased a new stake in shares of Applied Materials in the fourth quarter worth $31,000. Finally, Marquette Asset Management LLC raised its position in shares of Applied Materials by 150.0% during the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after purchasing an additional 75 shares during the period. Institutional investors own 80.56% of the company’s stock.

Applied Materials Stock Down 8.3%

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The company’s 50-day moving average price is $344.45 and its 200 day moving average price is $273.54. The stock has a market capitalization of $268.68 billion, a P/E ratio of 34.65, a P/E/G ratio of 1.67 and a beta of 1.65.

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

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s dividend payout ratio is currently 18.83%.

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.