Applied Materials (NASDAQ:AMAT) Upgraded at Zacks Research

Applied Materials (NASDAQ:AMAT) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Wednesday,Zacks.com reports.

AMAT has been the topic of a number of other reports. Erste Group Bank upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Monday, April 27th. Bank of America increased their price objective on shares of Applied Materials from $540.00 to $720.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. The Goldman Sachs Group boosted their target price on shares of Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Wolfe Research raised their price target on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Finally, Citigroup lifted their target price on Applied Materials from $550.00 to $710.00 and gave the company a “buy” rating in a research note on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $553.56.

Applied Materials Stock Down 7.4%

NASDAQ:AMAT opened at $603.04 on Wednesday. The firm has a market capitalization of $478.79 billion, a PE ratio of 56.62, a price-to-earnings-growth ratio of 1.81 and a beta of 1.57. The stock has a 50 day moving average of $495.52 and a 200-day moving average of $389.39. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The business had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. The business’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts predict that Applied Materials will post 12.11 EPS for the current year.

Insider Buying and Selling

In related news, insider Prabu G. Raja sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the sale, the insider directly owned 346,642 shares in the company, valued at $219,608,106.26. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the sale, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 278,088 shares of company stock worth $169,654,805 in the last ninety days. Insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently modified their holdings of AMAT. Brighton Jones LLC lifted its stake in Applied Materials by 28.0% during the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after buying an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC increased its position in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock worth $590,000 after acquiring an additional 679 shares in the last quarter. Forefront Wealth Partners LLC acquired a new stake in shares of Applied Materials during the second quarter valued at approximately $410,000. Schnieders Capital Management LLC. lifted its position in shares of Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock valued at $2,747,000 after acquiring an additional 3,469 shares in the last quarter. Finally, Sei Investments Co. boosted its stake in Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials is being highlighted as a key beneficiary of AI infrastructure spending, with coverage emphasizing its role in DRAM and advanced packaging innovations that support next-generation semiconductor growth. Applied Materials, Inc. (AMAT) Discusses DRAM and Advanced Packaging Innovations for AI-Driven Semiconductor Growth Prepared Remarks Transcript
• Positive Sentiment: Investor sentiment was also supported by a Zacks list naming AMAT among the day’s top momentum stocks, reinforcing bullish technical momentum. Best Momentum Stocks to Buy for July 2nd
• Positive Sentiment: Market commentary continues to frame Applied Materials as a behind-the-scenes winner from the AI boom, which could help justify its elevated valuation if chip demand stays strong. Applied Materials Is Silently Powering the AI Boom. Here’s Why.
• Neutral Sentiment: Broader semiconductor stocks sold off as investors took profits after a strong first half, suggesting some of AMAT’s weakness may be sector-driven rather than company-specific. Why Applied Materials (AMAT) Shares Are Falling Today
• Neutral Sentiment: Another report noted AMAT fell more than the overall market in the latest session, but the move was tied to chip-sector weakness rather than a new earnings miss or guidance cut. Applied Materials (AMAT) Suffers a Larger Drop Than the General Market: Key Insights
• Negative Sentiment: CEO Gary Dickerson disclosed two sizable stock sales, including 20,000 shares sold at $735.22, which can weigh on investor sentiment even though he still retains a very large position. Applied Materials (NASDAQ:AMAT) CEO Sells $14,704,400.00 in 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.