Applied Materials (NASDAQ:AMAT) Stock Price Down 6.3% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) was down 6.3% on Friday . The company traded as low as $321.74 and last traded at $324.74. Approximately 8,637,190 shares were traded during mid-day trading, an increase of 6% from the average daily volume of 8,153,797 shares. The stock had previously closed at $346.53.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Analysts and market pieces highlight a renewed semiconductor opportunity in 2026, which benefits AMAT as a leading chip-equipment supplier; this underpins investor confidence in the company’s medium‑to‑long‑term demand. Semiconductor Opportunity Is Here
• Positive Sentiment: A recent feature argues AMAT is balancing near-term sector turbulence while maintaining a long‑term chip demand story — reinforcing buy‑and‑hold narratives for chip-capex exposure. Applied Materials Balances Sector Turbulence With Long Term Chip Demand Story
• Positive Sentiment: Technical commentary notes AMAT broke above its 20‑day moving average, signaling short‑term bullish momentum that can attract momentum traders. Applied Materials (AMAT) Recently Broke Out Above the 20-Day Moving Average
• Positive Sentiment: Context pieces point out AMAT has gained strongly over recent months (≈+33% over three months), showing momentum that can support share prices when markets stabilize. AMAT Climbs 33.4% in 3 Months: Time to Buy, Sell or Hold the Stock?
• Neutral Sentiment: Erste Group initiated coverage with a “hold” rating — neither bullish nor bearish but may limit upside from fresh upbeat upgrades. Tickerreport: Erste Group Starts Coverage
• Neutral Sentiment: Recent short‑interest data reported as zeros/NaN appear erroneous; no clear signal from short sellers right now (data should be treated cautiously).
• Negative Sentiment: Broader market pressure: Nasdaq weakness and falling futures are dragging high‑beta tech and semicap names lower, pressuring AMAT despite company strengths. Live Nasdaq Composite: Markets Buckle Under Pressure With No Relief in Sight
• Negative Sentiment: Geopolitical risk and rising oil amid Middle East conflict are lifting energy prices and weighing on risk assets ahead of a key jobs report — a near‑term headwind for AMAT. Stock Futures Fall, Oil Jumps as Middle East War Continues; Key Jobs Report on Deck

Wall Street Analysts Forecast Growth

AMAT has been the topic of several research analyst reports. UBS Group set a $430.00 price target on shares of Applied Materials in a research note on Friday, February 13th. Sanford C. Bernstein restated an “outperform” rating and issued a $425.00 price objective on shares of Applied Materials in a research report on Friday, February 13th. JPMorgan Chase & Co. upped their price objective on Applied Materials from $220.00 to $260.00 and gave the stock an “overweight” rating in a report on Friday, November 14th. Weiss Ratings raised Applied Materials from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, December 29th. Finally, Morgan Stanley boosted their target price on Applied Materials from $420.00 to $432.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Price Performance

The firm has a market capitalization of $257.72 billion, a price-to-earnings ratio of 33.24, a price-to-earnings-growth ratio of 1.47 and a beta of 1.65. 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’s fifty day moving average is $326.31 and its two-hundred day moving average is $256.15.

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

Applied Materials Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 19th will be given a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Thursday, February 19th. Applied Materials’s dividend payout ratio (DPR) is currently 18.83%.

Insider Buying and Selling

In other Applied Materials news, Director Judy Bruner sold 2,500 shares of the firm’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $391.71, for a total transaction of $979,275.00. Following the transaction, the director owned 26,089 shares in the company, valued at approximately $10,219,322.19. This trade represents a 8.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Adam Sanders sold 534 shares of the business’s stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the transaction, the chief accounting officer owned 4,625 shares of the company’s stock, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,003 shares of company stock valued at $4,484,189 over the last three months. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of hedge funds have recently modified their holdings of AMAT. Grandfield & Dodd LLC lifted its stake in Applied Materials by 6.9% in the 3rd quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock valued at $55,180,000 after acquiring an additional 17,397 shares in the last quarter. Atlantic Union Bankshares Corp grew its stake in shares of Applied Materials by 23.0% during the 2nd quarter. Atlantic Union Bankshares Corp now owns 12,643 shares of the manufacturing equipment provider’s stock worth $2,315,000 after acquiring an additional 2,363 shares in the last quarter. First Trust Advisors LP raised its holdings in shares of Applied Materials by 4.9% in the third quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider’s stock valued at $635,057,000 after purchasing an additional 145,050 shares during the last quarter. Westfield Capital Management Co. LP raised its holdings in shares of Applied Materials by 13,360.6% in the second quarter. Westfield Capital Management Co. LP now owns 694,431 shares of the manufacturing equipment provider’s stock valued at $127,129,000 after purchasing an additional 689,272 shares during the last quarter. Finally, Canada Post Corp Registered Pension Plan lifted its position in shares of Applied Materials by 82.2% in the third quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider’s stock worth $5,512,000 after purchasing an additional 12,132 shares in the last quarter. 80.56% of the stock is currently 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.