Applied Materials (NASDAQ:AMAT) Stock Price Up 3.4% – What’s Next?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 3.4% during trading on Tuesday . The stock traded as high as $379.99 and last traded at $373.99. 6,306,675 shares were traded during mid-day trading, a decline of 20% from the average session volume of 7,855,007 shares. The stock had previously closed at $361.79.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Analyst/media commentary frames AMAT as an AI beneficiary — Tematica Research’s CIO and other guests argued a recent pullback may be a buying opportunity because Applied Materials stands to gain from strong AI-driven chip demand. How Applied Materials stock presents an AI opportunity
• Positive Sentiment: Company narrative around an “AI push” highlighted after the Cantor Fitzgerald presentation — coverage explains AMAT’s strategic positioning and product demand tied to data-center and AI chip ramp, which supports revenue/earnings growth expectations. What’s Behind Applied Materials, Inc. (AMAT)’s AI Push
• Positive Sentiment: Inclusion in dividend/active ETF conversations may attract inflows — MarketBeat notes AMAT is held in actively managed dividend ETFs (e.g., CGDV), which can bring steady institutional and retail demand even amid volatility. Active ETFs Surge Past Passive, and These Are in the Lead
• Neutral Sentiment: Zacks and other sites flag AMAT as a “trending”/heavily searched stock — higher attention can amplify moves but is not itself a directional catalyst; useful for short-term volatility monitoring. Applied Materials, Inc. (AMAT) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Broader dividend-rotation stories are driving investor interest in income and dividend-bearing tech names — AMAT isn’t listed as a dividend raiser in those pieces but could benefit indirectly from rotation into dividend/quality tech exposures. 5 Dividend Stocks Raise Payouts for Steady Income Amid Volatility
• Negative Sentiment: Macro/geopolitical risk is a near-term headwind — markets slid on geopolitical headlines (Dow futures down, oil up), which can pressure cyclical semiconductor capex sentiment and introduce volatility into AMAT shares. Dow Jones Futures Fall, Oil Prices Rise After Trump Threats To ‘Obliterate’ Iran’s Power Plants

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on AMAT shares. Sanford C. Bernstein restated an “outperform” rating and set a $425.00 price target on shares of Applied Materials in a report on Friday, February 13th. Bank of America lifted their target price on shares of Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. KeyCorp boosted their target price on Applied Materials from $380.00 to $450.00 and gave the stock an “overweight” rating in a research note on Friday, February 13th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $450.00 target price on shares of Applied Materials in a report on Friday, February 13th. Finally, DZ Bank upgraded Applied Materials to a “hold” rating in a report on Monday, February 16th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Stock Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The company has a market cap of $296.80 billion, a PE ratio of 38.28, a price-to-earnings-growth ratio of 1.59 and a beta of 1.65. The company’s 50 day moving average price is $341.72 and its 200-day moving average price is $271.38.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate of $2.21 by $0.17. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The business had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.88 billion. During the same quarter in the prior year, the business earned $2.38 earnings per share. Applied Materials’s revenue for the quarter was down 2.1% on a year-over-year basis. 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 Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is currently 18.83%.

Insider Buying and Selling

In other Applied Materials news, Director Judy Bruner sold 2,500 shares of the company’s stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $391.71, for a total transaction of $979,275.00. Following the sale, the director directly owned 26,089 shares of the company’s stock, valued at $10,219,322.19. This represents a 8.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the completion of the transaction, the chief financial officer owned 138,565 shares of the company’s stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 12,003 shares of company stock valued at $4,484,189. 0.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of AMAT. Old North State Trust LLC bought a new stake in Applied Materials during the 4th quarter valued at $240,000. Forty three Eighteen Advisors LLC bought a new position in shares of Applied Materials in the fourth quarter worth $2,533,000. Fund Advisors of America Inc FL purchased a new position in shares of Applied Materials in the fourth quarter valued at $316,000. World Investment Advisors grew its position in shares of Applied Materials by 4.5% in the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock valued at $21,149,000 after purchasing an additional 3,508 shares in the last quarter. Finally, Meadowbrook Advisors Group LLC bought a new stake in shares of Applied Materials during the 4th quarter valued at $562,000. 80.56% of the stock is owned by institutional investors.

About Applied Materials

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.