Applied Materials (NASDAQ:AMAT) Shares Gap Up – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $570.50, but opened at $627.31. Applied Materials shares last traded at $625.3650, with a volume of 2,069,892 shares.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials rallied after CEO Gary Dickerson said chipmakers have “tremendous visibility” into demand, implying the AI investment cycle could support equipment orders for years rather than quarters. Applied Materials (AMAT) Stock Jumps after CEO Says AI Chip Demand Has Years to Run
• Positive Sentiment: Meta Platforms’ reported plan to begin manufacturing an in-house AI chip helped spark a broader rally in semiconductor equipment stocks, including Applied Materials, on expectations that AI infrastructure spending will remain strong. Applied Materials stock jumps as Meta AI chip plan lifts semiconductor names
• Positive Sentiment: Stifel and Needham both raised their price targets on AMAT and kept buy ratings, reinforcing the view that improving fundamentals and AI-driven demand could support further upside. Applied Materials PT Raised to $650 at Stifel
• Neutral Sentiment: Applied Materials was removed from several Russell value-oriented indices in late June, a classification change that reflects the stock’s shift toward being viewed more as an AI/semiconductor growth name than a value stock. How Investors Are Reacting To Applied Materials (AMAT) Being Dropped From Key Russell Value Indices
• Neutral Sentiment: Short-interest data showed no reported short interest as of July 10, offering little evidence of bearish positioning from the latest filing.

Analyst Upgrades and Downgrades

Several research firms have recently commented on AMAT. UBS Group boosted their price target on shares of Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a report on Wednesday, June 10th. Truist Financial set a $575.00 price objective on shares of Applied Materials in a research note on Thursday, May 28th. JPMorgan Chase & Co. lifted their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Finally, Bank of America increased their target price on Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $589.48.

Applied Materials Trading Up 2.4%

The company has a 50 day moving average of $517.90 and a two-hundred day moving average of $402.29. The stock has a market capitalization of $478.36 billion, a PE ratio of 56.57, a P/E/G ratio of 1.63 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

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 analysts’ consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm’s revenue was up 11.4% compared to the same quarter last year. During the same period last year, the business posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Sell-side analysts predict that Applied Materials, Inc. will post 12.13 EPS for the current year.

Applied Materials Announces Dividend

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

Insider Buying and Selling

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were 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 in the company, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the transaction, the director directly owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 278,088 shares of company stock worth $169,654,805 over the last ninety days. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds have recently made changes to their positions in the company. Brighton Jones LLC grew its stake in Applied Materials by 28.0% during the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock worth $590,000 after purchasing an additional 679 shares during the last quarter. Forefront Wealth Partners LLC purchased a new position in shares of Applied Materials in the second quarter worth about $410,000. Schnieders Capital Management LLC. lifted its holdings in shares of Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares during the period. 80.56% of the stock is owned by institutional investors and hedge funds.

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.