Applied Materials (NASDAQ:AMAT) Trading Up 1.2% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price rose 1.2% during trading on Friday . The company traded as high as $536.54 and last traded at $507.67. Approximately 7,372,347 shares traded hands during mid-day trading, a decline of 11% from the average session volume of 8,299,655 shares. The stock had previously closed at $501.77.

Key Applied Materials News

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I’m Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock’s Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

Analyst Upgrades and Downgrades

Several analysts recently issued reports on AMAT shares. Truist Financial set a $575.00 price objective on shares of Applied Materials in a report on Thursday, May 28th. Susquehanna boosted their target price on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a research report on Tuesday, June 30th. Royal Bank Of Canada upped their price target on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. KeyCorp raised their price target on Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. Finally, Erste Group Bank upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $599.19.

Applied Materials Trading Up 1.2%

The firm has a market cap of $403.07 billion, a P/E ratio of 47.67, a PEG ratio of 1.11 and a beta of 1.57. The company’s 50 day moving average is $549.35 and its two-hundred day moving average is $429.43. 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 quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period in the previous year, the company posted $2.39 earnings per share. The company’s quarterly revenue 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 predict that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is presently 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 value of $42,587,906.25. Following the completion of the transaction, the chief executive officer owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. This represents a 4.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares of the company’s stock, valued at $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 278,088 shares of company stock valued at $169,654,805 over the last 90 days. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC acquired a new stake in Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the 4th quarter worth approximately $26,000. Financial Freedom LLC bought a new position in shares of Applied Materials during the 1st quarter worth approximately $28,000. Joseph Group Capital Management acquired a new stake in Applied Materials in the 4th quarter valued at $31,000. Finally, Dogwood Wealth Management LLC boosted its stake in Applied Materials by 52.4% in 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. Institutional investors own 80.56% of the company’s stock.

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.