Applied Materials (NASDAQ:AMAT) Shares Down 1.9% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT) dropped 1.9% during trading on Wednesday . The stock traded as low as $543.18 and last traded at $553.92. Approximately 4,926,047 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 8,300,885 shares. The stock had previously closed at $564.55.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials gained attention after TSMC’s planned chip price increases and large Arizona expansion highlighted sustained demand for semiconductor manufacturing equipment tied to AI infrastructure. Applied Materials (AMAT) Jumps On TSMC Expansion As Fair Value Debate Stays Open
• Positive Sentiment: Analysts expect Applied Materials’ upcoming fiscal third-quarter results to show a double-digit earnings increase, supporting optimism ahead of the August 13 report. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Positive Sentiment: The company officially announced its fiscal third-quarter 2026 earnings call for August 13, giving investors a near-term catalyst to watch. Applied Materials to Report Fiscal Third Quarter 2026 Results on Aug. 13, 2026
• Positive Sentiment: Broader semiconductor enthusiasm remains strong as AI demand continues to power the sector, and AMAT is being named among the stocks positioned to benefit. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Neutral Sentiment: Commentary around Applied Materials’ “wide moat” status and long-term durability is supportive, but it does not add a new near-term catalyst. Top Wide-Moat Stocks to Invest in for Sustainable Growth
• Neutral Sentiment: A separate note said historical trading patterns suggest AMAT may be due for a rebound after recent weakness, but this is more technical commentary than a fundamental driver. History Says Applied Materials Stock Looks Ripe for Rebound

Wall Street Analysts Forecast Growth

AMAT has been the topic of several research reports. Mizuho increased their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 8th. Wells Fargo & Company lifted their target price on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research note on Friday, June 26th. TD Cowen upped their target price on Applied Materials from $525.00 to $700.00 and gave the company a “buy” rating in a report on Thursday, July 9th. KeyCorp increased their price target on Applied Materials from $550.00 to $750.00 and gave the stock 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 report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $593.84.

Applied Materials Stock Performance

The firm has a market cap of $446.84 billion, a price-to-earnings ratio of 52.85, a PEG ratio of 1.41 and a beta of 1.57. The stock’s fifty day moving average is $542.22 and its two-hundred day moving average is $422.30. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. Applied Materials’s revenue was up 11.4% compared to the same quarter last year. During the same quarter last year, the business earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, analysts expect that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

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

Insider Activity

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the transaction, the senior vice president directly 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock worth $169,654,805 over the last ninety days. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Large investors have recently bought and sold shares of the stock. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials during the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC acquired a new stake in Applied Materials in the fourth quarter worth approximately $26,000. Financial Freedom LLC bought a new position in Applied Materials during the 1st quarter valued at $28,000. Highline Wealth Partners LLC boosted 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 purchasing an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management bought a new position in Applied Materials during the 4th quarter valued at $31,000. Institutional investors and hedge funds 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.