Applied Materials (NASDAQ:AMAT) Sets New 1-Year High – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) reached a new 52-week high on Monday . The company traded as high as $592.95 and last traded at $588.6010, with a volume of 133247 shares. The stock had previously closed at $567.25.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials announced a long-term joint development agreement with EssilorLuxottica to co-develop AR and AI-powered smart eyewear optics, opening a new growth angle beyond its core semiconductor equipment business. Article Title
• Positive Sentiment: The company also unveiled new deposition and selective etch systems designed to improve precision in 3D chip structures, a development aimed at boosting performance and yield for AI chips. Article Title
• Positive Sentiment: Applied Materials opened a new $500 million manufacturing facility in Singapore, signaling continued investment to expand capacity and support demand tied to AI-driven semiconductor equipment growth. Article Title
• Positive Sentiment: Barclays and Cantor Fitzgerald raised their price targets on AMAT, reinforcing bullish sentiment around wafer fab equipment spending and the company’s earnings outlook. Article Title
• Neutral Sentiment: Some commentary noted that AMAT’s valuation has become stretched after a strong rally, which may limit upside even as fundamentals remain solid. Article Title
• Negative Sentiment: One market note said AMAT slipped despite the EssilorLuxottica deal, suggesting investors may be taking profits or waiting for clearer near-term financial impact from the partnership. Article Title

Analysts Set New Price Targets

A number of analysts recently weighed in on AMAT shares. Royal Bank Of Canada increased their price objective on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. Argus raised their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th. Mizuho raised their target price on shares of Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. JPMorgan Chase & Co. raised their target price on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Finally, Raymond James Financial set a $650.00 target price on shares of Applied Materials in a research note on Wednesday, June 10th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and an average target price of $483.03.

Applied Materials Stock Performance

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The company’s 50-day moving average price is $436.36 and its two-hundred day moving average price is $358.14. The company has a market cap of $451.15 billion, a P/E ratio of 53.35, a price-to-earnings-growth ratio of 1.63 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter last year, the firm posted $2.39 EPS. The business’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. As a group, equities analysts forecast that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Announces Dividend

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

Insider Buying and Selling at Applied Materials

In other news, insider Prabu G. Raja sold 50,000 shares of the firm’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the completion of the transaction, the insider owned 356,642 shares in the company, valued at approximately $180,204,069.76. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Adam Sanders sold 268 shares of the firm’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $434.22, for a total transaction of $116,370.96. Following the transaction, the chief accounting officer owned 4,280 shares of the company’s stock, valued at approximately $1,858,461.60. This trade represents a 5.89% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 53,896 shares of company stock worth $27,135,121. Company insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Private Wealth Management Group LLC boosted its holdings in shares of Applied Materials by 4.9% in the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after buying an additional 25 shares during the period. One Day In July LLC boosted its holdings in shares of Applied Materials by 2.4% in the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after buying an additional 26 shares during the period. Pinnacle Bancorp Inc. boosted its holdings in shares of Applied Materials by 1.3% in the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after buying an additional 27 shares during the period. Horst & Graben Wealth Management LLC boosted its holdings in shares of Applied Materials by 2.1% in the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after buying an additional 27 shares during the period. Finally, Warther Private Wealth LLC boosted its holdings in shares of Applied Materials by 1.5% in the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after buying an additional 28 shares during the period. 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.