Applied Materials (NASDAQ:AMAT) Stock Price Up 2% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shot up 2% on Tuesday . The company traded as high as $355.28 and last traded at $345.88. 6,110,324 shares changed hands during trading, a decline of 25% from the average session volume of 8,139,091 shares. The stock had previously closed at $338.94.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Applied and Micron announced a strategic R&D partnership to build next‑gen DRAM, HBM and NAND for AI at Applied’s EPIC Center and Micron’s Idaho hub — a move that could accelerate AI memory product development, strengthen AMAT’s customer pipeline and justify longer‑term revenue upside. Applied Materials and Micron Partner To Advance U.S. Innovation in Next‑Generation AI Memory Solutions
• Positive Sentiment: Media coverage highlights the collaboration as material to AMAT’s AI growth narrative (reports call it a multi‑billion dollar EPIC initiative and say the news helped lift the stock), supporting investor optimism around secular AI demand. Applied Materials, Micron Target AI Dominance With New ‘Monster’ Memory Chips
• Neutral Sentiment: Analyst coverage is mixed: Erste Group initiated coverage with a Hold, and broader sell‑side sentiment remains constructive but not unanimous — this tempers immediate upside despite the partnership news. Erste Group Initiated Applied Materials, Inc. (AMAT) With a Hold Rating – Here’s Why
• Neutral Sentiment: Management presented at the Cantor technology conference (transcript available) — useful for detail but not an immediate catalyst. Applied Materials Presents at 2026 Cantor Conference (Transcript)
• Negative Sentiment: Coverage questioning the recent pullback: pieces note that despite $1.04B of Q1 free cash flow and beat metrics, the stock has pulled back from highs amid profit‑taking and valuation concerns — a potential headwind for near‑term momentum. Applied Materials Q1 2026 Free Cash Flow Hit $1.04 Billion, So Why Is the Stock Sliding
• Negative Sentiment: Insider/ownership and short‑interest notes (including a report of recent insider unloading and mixed short‑interest data) add uncertainty for traders watching supply dynamics. Applied Materials (NASDAQ:AMAT) Stock Unloaded Sen. John Boozman

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $450.00 target price on shares of Applied Materials in a report on Friday, February 13th. The Goldman Sachs Group lifted their price objective on shares of Applied Materials from $310.00 to $390.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Jefferies Financial Group boosted their price objective on shares of Applied Materials from $260.00 to $360.00 and gave the stock a “buy” rating in a research note on Monday, December 15th. Erste Group Bank started coverage on Applied Materials in a report on Thursday, March 5th. They set a “hold” rating for the company. Finally, Craig Hallum restated a “hold” rating and set a $190.00 price target on shares of Applied Materials in a research note on Friday, November 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Trading Up 2.0%

The company has a 50 day simple moving average of $327.82 and a two-hundred day simple moving average of $258.09. 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 firm has a market cap of $274.49 billion, a PE ratio of 35.40, a P/E/G ratio of 1.47 and a beta of 1.65.

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

Applied Materials Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Thursday, February 19th will be paid a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, February 19th. Applied Materials’s payout ratio is presently 18.83%.

Insider Activity

In other Applied Materials news, CAO Adam Sanders sold 534 shares of the company’s stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the sale, the chief accounting officer directly owned 4,625 shares of the company’s stock, valued at approximately $1,753,615. This represents a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 5,000 shares of the stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares in the company, valued at $50,051,063.65. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,003 shares of company stock valued at $4,484,189 in the last ninety days. Insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of hedge funds have recently modified their holdings of the stock. Cornerstone Financial Management LLC purchased a new position in Applied Materials during the fourth quarter valued at approximately $25,000. Marquette Asset Management LLC boosted its position in Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares in the last quarter. Redmont Wealth Advisors LLC purchased a new stake in Applied Materials in the 3rd quarter worth approximately $26,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials during the 4th quarter worth approximately $26,000. Finally, Highline Wealth Partners LLC grew its stake in shares of Applied Materials by 48.7% during the 4th 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 during the period. Hedge funds and other 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.