Applied Materials (NASDAQ:AMAT) Trading 8.6% Higher – Should You Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) traded up 8.6% during trading on Monday . The stock traded as high as $497.71 and last traded at $492.17. 9,606,172 shares were traded during mid-day trading, an increase of 29% from the average session volume of 7,425,270 shares. The stock had previously closed at $453.01.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials received a new Street-high price target from a top Wall Street analyst, reinforcing optimism that earnings and demand can stay strong. Applied Materials Stock (AMAT) Scores a New Street-High Price Target from a Top Wall Street Analyst
• Positive Sentiment: Cantor reportedly raised price targets on Applied Materials and other chip equipment names, adding to the bullish analyst momentum across the semiconductor gear group. KLA Corp., Lam Research, Applied Materials, ASML in focus as Cantor ups price targets
• Positive Sentiment: Applied Materials expanded its Singapore manufacturing and R&D footprint with a $500 million facility to support AI chip demand, signaling confidence in continued order growth and stronger capacity utilization. Applied Materials Expands Singapore Manufacturing to Support AI Chip Demand
• Positive Sentiment: The company’s latest earnings backdrop remains strong, with record revenue, elevated margins, and raised 2026 equipment growth guidance, which supports the bullish case for the stock. How Record Margins, AI Demand Visibility and Singapore Expansion At Applied Materials (AMAT) Has Changed Its Investment Story
• Neutral Sentiment: Applied Materials also announced a quarterly cash dividend of $0.53 per share, reinforcing shareholder returns, but this is unlikely to be a major near-term driver of the stock. Applied Materials Announces Cash Dividend
• Negative Sentiment: Some weakness appeared as investors weighed the Singapore expansion against broader caution in semiconductor stocks and recent chatter about a sector correction after a strong run. Applied Materials Bets $500 Million On Singapore As AI Chip Demand Grows

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Wells Fargo & Company raised their target price on shares of Applied Materials from $435.00 to $520.00 and gave the stock an “overweight” rating in a research note on Friday, May 15th. Cantor Fitzgerald raised their target price on shares of Applied Materials from $575.00 to $650.00 and gave the stock an “overweight” rating in a research note on Wednesday. Jefferies Financial Group raised their price objective on shares of Applied Materials from $415.00 to $510.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Truist Financial set a $575.00 price objective on shares of Applied Materials in a research note on Thursday, May 28th. Finally, UBS Group raised their price objective on shares of Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a research note on Wednesday. Twenty-seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $480.13.

Applied Materials Price Performance

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 company’s 50 day moving average is $415.25 and its 200 day moving average is $346.85. The stock has a market cap of $394.61 billion, a price-to-earnings ratio of 46.67, a PEG ratio of 1.38 and a beta of 1.67.

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, 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 firm had revenue of $7.91 billion during the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter last year, the business earned $2.39 earnings per share. The business’s revenue for the quarter 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. Research analysts forecast that Applied Materials, Inc. will post 12.02 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

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

Insider Buying and Selling at Applied Materials

In other Applied Materials news, 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 completion of the transaction, the chief accounting officer directly owned 4,280 shares in the company, valued at approximately $1,858,461.60. This trade represents a 5.89% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Brice Hill sold 2,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $498.86, for a total transaction of $1,247,150.00. Following the transaction, the chief financial officer owned 136,113 shares of the company’s stock, valued at $67,901,331.18. This trade represents a 1.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 53,896 shares of company stock valued at $27,135,121. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently added to or reduced their stakes in AMAT. Capital Research Global Investors grew its holdings in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after buying an additional 17,829,377 shares in the last quarter. Norges Bank purchased a new stake in shares of Applied Materials during the fourth quarter worth about $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Applied Materials by 617.2% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after buying an additional 7,856,576 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in shares of Applied Materials by 40.1% during the third quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock worth $2,563,376,000 after buying an additional 3,583,751 shares in the last quarter. Finally, Auto Owners Insurance Co grew its holdings in shares of Applied Materials by 25,824.4% during the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock worth $86,610,000 after buying an additional 3,357,167 shares in the last quarter. 80.56% of the stock is currently owned by hedge funds and other 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.