Applied Materials (NASDAQ:AMAT) Trading Up 13.4% – Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 13.4% on Thursday . The company traded as high as $669.22 and last traded at $668.00. 16,006,438 shares traded hands during trading, an increase of 103% from the average daily volume of 7,879,589 shares. The stock had previously closed at $588.97.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials unveiled new chipmaking systems designed to accelerate DRAM and advanced packaging for AI chips, including tools aimed at improving memory speed, efficiency, yield, and defect inspection. Applied Materials Introduces New Systems to Accelerate DRAM and Advanced Packaging for AI Chips
• Positive Sentiment: Analysts and commentators say the launch strengthens AMAT’s position in the AI buildout, with price-target upgrades and bullish calls pointing to more demand for semiconductor equipment. Here’s Why Applied Materials Stock (AMAT) Is Soaring Today
• Positive Sentiment: Wells Fargo reportedly raised its price target to a Street-high level and maintained a positive rating, reinforcing the view that AI infrastructure spending could keep driving orders for AMAT’s equipment. Why Applied Materials Just Got a New Street-High Price Target
• Neutral Sentiment: Broader AI-chip optimism is also lifting the stock, as Micron-led momentum and general demand for memory/HBM equipment improve sentiment across the chip equipment group. Micron Sparks Fresh AI Stock Rally
• Negative Sentiment: Some prior articles noted valuation concerns after the recent run-up, suggesting the stock can be sensitive if AI demand or customer spending slows. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Wells Fargo & Company upped their price target on shares of Applied Materials from $520.00 to $715.00 and gave the stock an “overweight” rating in a report on Monday. Bank of America increased their price objective on Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a research report on Tuesday. Morgan Stanley reissued an “equal weight” rating and set a $502.00 price objective (up from $454.00) on shares of Applied Materials in a research note on Friday, May 15th. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average target price of $501.26.

Applied Materials Trading Up 13.4%

The stock has a 50 day moving average of $463.44 and a 200 day moving average of $372.78. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The firm has a market cap of $530.36 billion, a P/E ratio of 62.72, a PEG ratio of 1.63 and a beta of 1.67.

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, topping 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 during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the previous year, the company posted $2.39 earnings per share. The company’s 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. As a group, equities research analysts predict that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Insider Activity

In related news, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction 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 of the company’s stock, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.75, for a total transaction 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. The trade was a 4.06% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 199,767 shares of company stock valued at $114,104,709. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Cornerstone Financial Management LLC bought a new stake in Applied Materials in the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC bought a new position in shares of Applied Materials in the fourth quarter worth approximately $26,000. Financial Freedom LLC bought a new position in shares of Applied Materials in the first quarter worth approximately $28,000. 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 buying an additional 38 shares during the period. Finally, Joseph Group Capital Management purchased a new position in shares of Applied Materials in the fourth quarter worth $31,000. 80.56% of the stock is owned by institutional investors.

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.