Applied Materials (NASDAQ:AMAT) Shares Gap Up – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $497.01, but opened at $522.49. Applied Materials shares last traded at $535.3450, with a volume of 1,342,507 shares.

More Applied Materials News

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

• Positive Sentiment: Barclays reiterated an Overweight rating on Applied Materials, saying investment in new chip supply remains strong and supporting the stock’s bullish momentum. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Positive Sentiment: Erste Group Bank raised its earnings estimates for Applied Materials, lifting FY2026 EPS forecast to $12.20 and FY2027 to $16.29, while keeping a Buy rating. Applied Materials estimate revision
• Positive Sentiment: Several recent articles highlighted Applied Materials as a top momentum and AI-beneficiary stock, with commentary pointing to strong May performance, heavy hedge fund ownership, and broad analyst support. Is Applied Materials (AMAT) A Good Stock to Buy Now?
• Positive Sentiment: Investor attention is also being fueled by a recent 52-week-high move and reports of continued rotation into chip equipment stocks, reinforcing the view that AMAT remains a favored AI infrastructure name. Why Did AMAT, AMPG, OSCR Stocks Surge To 52-Week Highs Today?
• Neutral Sentiment: Other coverage today was largely repeated “great momentum stock” and “attracting investor attention” pieces, reflecting strong market interest rather than a new company-specific catalyst. Applied Materials (AMAT) is a Great Momentum Stock: Should You Buy?

Analysts Set New Price Targets

A number of research firms have recently issued reports on AMAT. Citigroup upped their target price on shares of Applied Materials from $420.00 to $520.00 and gave the stock a “buy” rating in a report on Tuesday, May 12th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $525.00 target price on shares of Applied Materials in a report on Friday, May 15th. JPMorgan Chase & Co. boosted their price target on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research report on Friday, May 15th. Seaport Research Partners began coverage on shares of Applied Materials in a research report on Monday, May 4th. They issued a “buy” rating and a $500.00 target price on the stock. Finally, Mizuho upped their target price on shares of Applied Materials from $500.00 to $540.00 and gave the company an “outperform” rating in a research report on Wednesday, May 27th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $483.03.

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 has a market capitalization of $450.37 billion, a PE ratio of 53.26, a price-to-earnings-growth ratio of 1.54 and a beta of 1.67. The company’s 50 day simple moving average is $427.22 and its 200 day simple moving average is $352.62.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the firm posted $2.39 earnings per share. The company’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. As a group, sell-side analysts predict that Applied Materials, Inc. will post 12.1 earnings per share for the current year.

Applied Materials Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis 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 Activity

In other Applied Materials news, Director Judy Bruner sold 1,128 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $450.00, for a total transaction of $507,600.00. Following the sale, the director directly owned 26,544 shares in the company, valued at approximately $11,944,800. The trade was a 4.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the sale, the insider owned 356,642 shares in the company, valued at $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 53,896 shares of company stock valued at $27,135,121. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Institutional investors have recently made changes to their positions in the stock. Financial Freedom LLC purchased a new stake in shares of Applied Materials during the 1st quarter worth $28,000. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth $25,000. Whipplewood Advisors LLC boosted its position in shares of Applied Materials by 218.8% during the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after purchasing an additional 70 shares in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials during the 4th quarter worth $26,000. Finally, MBM Wealth Consultants LLC purchased a new stake in shares of Applied Materials during the 1st quarter worth $38,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.