Applied Materials (NASDAQ:AMAT) Trading Up 2.2% – Here’s What Happened

Shares of Applied Materials, Inc. (NASDAQ:AMAT) traded up 2.2% during trading on Friday . The stock traded as high as $545.94 and last traded at $539.14. 4,462,818 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 8,210,830 shares. The stock had previously closed at $527.48.

More Applied Materials News

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

• Positive Sentiment: Analysts remain broadly optimistic about AMAT, with consensus price targets implying additional upside. Citi reportedly identified Applied Materials as a top semiconductor pick following the sector’s selloff, while other coverage highlights the company’s strong position in deposition, etch, inspection and wafer-processing equipment. Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?
• Positive Sentiment: AI infrastructure spending is supporting the outlook for semiconductor manufacturing equipment. A potential Tesla-SpaceX “Terafab” buildout, along with rising demand for AI chips, advanced packaging and memory, could create additional opportunities for Applied Materials. Tesla-SpaceX Terafab Bet
• Positive Sentiment: Expectations for the August 13 report are favorable: analysts anticipate earnings growth and a potential beat. Applied Materials’ previous quarter exceeded consensus on both earnings and revenue, with revenue up 11.4% year over year, providing a constructive comparison for the upcoming release. Applied Materials Reports Next Week
• Neutral Sentiment: Options markets are pricing a potentially large earnings move, reportedly around 11%. That highlights significant event risk: a strong report and outlook could extend the rally, but merely meeting high expectations may not be enough. Options Market and AMAT’s Earnings Move
• Negative Sentiment: Erste Group Bank lowered its rating on AMAT to Hold. The downgrade adds pressure after the stock’s strong rebound and reinforces concerns that substantial AI optimism is already reflected in the valuation. Applied Materials Rating Lowered to Hold
• Negative Sentiment: Investor Michael Burry’s disclosed short positions in AI-linked semiconductor names, including Applied Materials, have revived concerns about an AI-stock reversal and heightened volatility. As Burry Targets AI Chip Names

Analyst Ratings Changes

Several analysts recently weighed in on the stock. Citigroup reiterated a “buy” rating on shares of Applied Materials in a report on Monday, August 3rd. HSBC restated a “buy” rating and set a $683.00 price target on shares of Applied Materials in a research report on Monday, July 27th. Morgan Stanley lifted their price objective on Applied Materials from $502.00 to $647.00 and gave the company an “equal weight” rating in a research note on Monday, July 6th. TD Cowen boosted their price objective on Applied Materials from $525.00 to $700.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Finally, Zacks Research raised Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $603.23.

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 has a market capitalization of $428.06 billion, a price-to-earnings ratio of 50.62, a price-to-earnings-growth ratio of 1.37 and a beta of 1.61. The stock’s fifty day simple moving average is $559.47 and its 200-day simple moving average is $437.71.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping 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 business had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter in the previous year, the firm posted $2.39 earnings per share. The company’s quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts predict that Applied Materials, Inc. will post 12.17 EPS for the current year.

Applied Materials Dividend Announcement

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

Insider Activity at Applied Materials

In other news, SVP Omkaram Nalamasu sold 24,263 shares of the business’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 completion of the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was 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 $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 over the last quarter. 0.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Evolve Private Wealth LLC raised its position in shares of Applied Materials by 59.0% during the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock worth $983,000 after acquiring an additional 1,067 shares in the last quarter. WealthPlan Investment Management LLC acquired a new position in Applied Materials in the fourth quarter valued at approximately $1,082,000. Ameritas Advisory Services LLC increased its stake in Applied Materials by 183.7% in the fourth quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider’s stock valued at $790,000 after purchasing an additional 1,990 shares during the last quarter. Assetmark Inc. increased its stake in Applied Materials by 9.3% in the fourth quarter. Assetmark Inc. now owns 376,513 shares of the manufacturing equipment provider’s stock valued at $96,760,000 after purchasing an additional 32,136 shares during the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong raised its holdings in Applied Materials by 204.8% during the fourth quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider’s stock worth $36,177,000 after purchasing an additional 94,587 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.