Applied Materials (NASDAQ:AMAT) Shares Down 7.8% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares were down 7.8% during trading on Tuesday . The stock traded as low as $467.01 and last traded at $476.46. Approximately 9,812,773 shares were traded during mid-day trading, an increase of 19% from the average daily volume of 8,264,086 shares. The stock had previously closed at $516.89.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Strong chip-sector rally: Technology was the market’s strongest-performing sector, with semiconductor stocks among the leaders. The rebound supports demand expectations for wafer-fabrication equipment and helped lift Applied Materials. Chip Stocks Boost Tech-Led Rebound Rally at Software’s Expense
• Positive Sentiment: AI infrastructure optimism remains supportive: Bullish comments from NVIDIA CEO Jensen Huang about the scale of AI-infrastructure expansion reinforce expectations for continued semiconductor capital spending, potentially benefiting equipment suppliers such as AMAT. Can Nvidia Reclaim $5 Trillion? Jensen Huang’s Bullish AI Call Says Yes
• Neutral Sentiment: Investor attention is elevated: Applied Materials has been among the most heavily searched stocks, which may increase trading interest but does not itself indicate a change in the company’s fundamentals. Investors Heavily Search Applied Materials, Inc. (AMAT)
• Negative Sentiment: Sector risks remain: Recent semiconductor selling reflected concerns about intensifying Chinese competition and whether AI-related demand and spending can remain durable. Weakness at peer KLA, where analysts questioned growth despite upbeat guidance, also highlights valuation and equipment-demand risks for AMAT. Semiconductor Stocks Trade Down Amid Global Sell-Off

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. JPMorgan Chase & Co. upped their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a report on Friday, May 15th. B. Riley Financial increased their target price on Applied Materials from $550.00 to $790.00 and gave the company a “buy” rating in a research note on Friday, June 26th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Jefferies Financial Group lifted their price target on Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Finally, HSBC reissued a “buy” rating and issued a $683.00 price objective on shares of Applied Materials in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and a consensus target price of $599.19.

Applied Materials Stock Up 15.0%

The firm has a 50 day moving average of $547.86 and a 200-day moving average of $428.02. 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 stock has a market capitalization of $398.39 billion, a P/E ratio of 47.11, a price-to-earnings-growth ratio of 1.21 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company’s quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal 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 paid a dividend of $0.53 per share. The ex-dividend date is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s payout ratio is currently 19.91%.

Insider Transactions at Applied Materials

In other news, insider Prabu G. Raja sold 10,000 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the transaction, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction dated 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 $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC bought a new position in shares of Applied Materials during the 4th quarter worth approximately $25,000. Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the fourth quarter worth $26,000. Financial Freedom LLC bought a new position in shares of Applied Materials during the first quarter valued at $28,000. Highline Wealth Partners LLC grew its holdings in shares of Applied Materials by 48.7% in 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 last quarter. Finally, Joseph Group Capital Management bought a new stake in shares of Applied Materials in the 4th quarter worth about $31,000. 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.