Applied Materials (NASDAQ:AMAT) Stock Price Down 6.5% – Time to Sell?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price was down 6.5% on Tuesday . The company traded as low as $527.63 and last traded at $554.50. Approximately 12,224,569 shares were traded during mid-day trading, an increase of 47% from the average session volume of 8,303,085 shares. The stock had previously closed at $592.79.

More Applied Materials News

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

• Positive Sentiment: CEO commentary pointed to “tremendous visibility” into demand and suggested the AI investment boom may last longer than many expected, reinforcing the case for sustained equipment spending by chipmakers. Applied Materials CEO Sees ‘Tremendous Visibility’ Into Demand
• Positive Sentiment: Applied Materials is benefiting from the market’s renewed focus on AI infrastructure, with investors rotating back into semiconductor equipment names after recent volatility. Applied Materials (AMAT) Rebounds On AI Demand Outlook As Fair Value Debate Returns
• Positive Sentiment: Meta’s plans to develop in-house chips are being seen as another tailwind for equipment suppliers like Applied Materials, Lam Research, and KLA, since more custom chip design still requires extensive manufacturing tools. Applied Materials and Lam Research Take Off on Meta’s Chip Plans
• Positive Sentiment: Wall Street reports also noted that semiconductor stocks, including AMAT, are leading the market higher as AI-related names regain momentum. Wall Street Can’t Get Enough of These AI Plays
• Neutral Sentiment: Analysts continue to debate valuation after the stock’s strong run, but recent price-target increases and long-term growth forecasts suggest expectations remain constructive overall. Susquehanna Raises Price Target on Applied Materials, Inc. (AMAT)
• Neutral Sentiment: Applied Materials has also been highlighted as a potential beneficiary of stronger advanced packaging demand, which could support another growth phase if AI-driven chip complexity keeps rising. Can AMAT’s Advanced Packaging Drive Its Next Growth Phase?

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. Wells Fargo & Company boosted their price target on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research note on Friday, June 26th. Royal Bank Of Canada increased their price target on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. TD Cowen lifted their price objective on Applied Materials from $525.00 to $700.00 and gave the stock a “buy” rating in a research report on Thursday. Cantor Fitzgerald upped their price objective on shares of Applied Materials from $650.00 to $850.00 and gave the company an “overweight” rating in a research note on Monday, June 29th. Finally, Argus boosted their price target on Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. 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 data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $578.84.

Applied Materials Trading Up 3.1%

The business’s 50-day simple moving average is $509.35 and its two-hundred day simple moving average is $398.54. The stock has a market capitalization of $467.07 billion, a price-to-earnings ratio of 55.24, a PEG ratio of 1.54 and a beta of 1.57. 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 released its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 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 for the quarter, compared to analyst estimates of $7.68 billion. During the same period in the previous year, the company posted $2.39 EPS. Applied Materials’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, research analysts anticipate that Applied Materials, Inc. will post 12.11 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

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

Insider Transactions at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the stock in a transaction that occurred on 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 sale, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares in the company, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 278,088 shares of company stock valued at $169,654,805 over the last ninety days. Insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors and hedge funds have recently bought and sold shares of AMAT. Brighton Jones LLC raised its holdings 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 worth $2,061,000 after buying an additional 2,771 shares during the period. Sivia Capital Partners LLC grew its stake in Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after acquiring an additional 679 shares in the last quarter. Forefront Wealth Partners LLC purchased a new stake in shares of Applied Materials in the second quarter worth approximately $410,000. Schnieders Capital Management LLC. increased its stake in Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock valued at $2,747,000 after buying an additional 3,469 shares during the period. Finally, Sei Investments Co. boosted its stake in shares of Applied Materials by 59.3% during the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock valued at $77,383,000 after buying 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.