Applied Materials (NASDAQ:AMAT) Trading Up 2.2% – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares shot up 2.2% on Thursday . The stock traded as high as $359.05 and last traded at $357.21. 6,402,763 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 7,756,068 shares. The stock had previously closed at $349.47.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Company raised its quarterly dividend by 15%, continuing nine years of dividend growth and signaling management confidence in cash flow and the AI-driven capex cycle. The hike (to $0.53/share) and a modest forward payout ratio support shareholder returns and likely boosted buying. Applied Materials Lifts Dividend
• Positive Sentiment: Analyst and investor write-ups are bullish on AMAT’s role in the AI and memory/logic equipment cycle (including a Seeking Alpha deep-dive and noted bullish positioning by investors such as Ken Fisher), which supports upside expectations for revenue and margins. Seeking Alpha: AI Gold Rush InsiderMonkey: Ken Fisher Positive
• Positive Sentiment: Industry capex signal: imec secured a rare ASML High-NA EUV tool—an indicator that leading-edge chipmaking is accelerating, which bodes well for equipment suppliers like AMAT as customers prepare next-generation fabs. imec Secures ASML High NA Tool
• Neutral Sentiment: Feature pieces summarize why investors are watching AMAT (growth from AI/memory demand, recent strong run-up). Useful context but not new catalysts by itself. 3 Reasons Investors Watch Applied Materials
• Neutral Sentiment: Short-interest data in the feed appears to show zero/NaN totals and a 0.0 days-to-cover figure — likely a reporting anomaly and not a meaningful signal about investor positioning. (Multiple short-interest entries in the last 48 hours.)
• Negative Sentiment: Broader market caution — futures pulled back on cautious Fed commentary and chip-stock volatility (Micron fell after blowout results), which can pressure momentum names like AMAT in the near term. Dow Jones Futures: Market Caution

Analyst Upgrades and Downgrades

AMAT has been the topic of several research reports. Susquehanna raised shares of Applied Materials from a “neutral” rating to a “positive” rating and lifted their price objective for the company from $180.00 to $400.00 in a report on Sunday, January 11th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $470.00 target price on shares of Applied Materials in a research report on Friday, February 13th. Summit Insights raised Applied Materials from a “hold” rating to a “buy” rating in a research report on Friday, February 13th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $450.00 price objective on shares of Applied Materials in a research note on Friday, February 13th. Finally, Royal Bank Of Canada set a $430.00 price objective on Applied Materials in a research report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials currently has an average rating of “Moderate Buy” and a consensus price target of $363.46.

Applied Materials Stock Performance

The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The company has a market capitalization of $283.67 billion, a PE ratio of 36.59, a PEG ratio of 1.57 and a beta of 1.65. The business has a 50 day simple moving average of $337.99 and a 200 day simple moving average of $266.38.

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

Applied Materials Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 annualized dividend and a yield of 0.6%. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is presently 18.83%.

Insider Buying and Selling at Applied Materials

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 sale, the chief financial officer directly owned 138,565 shares of the company’s stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 owned 28,589 shares of the company’s stock, valued at $10,778,624.78. This trade represents a 12.19% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,003 shares of company stock worth $4,484,189. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Cornerstone Financial Management LLC purchased a new stake in Applied Materials in the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC purchased a new position in Applied Materials during the 4th quarter worth approximately $26,000. Highline Wealth Partners LLC lifted its stake in Applied Materials by 48.7% during the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares during the period. Joseph Group Capital Management acquired a new stake in Applied Materials during the 4th quarter valued at approximately $31,000. Finally, Marquette Asset Management LLC boosted its holdings in shares of Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after acquiring an additional 75 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

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.