Applied Materials, Inc. (NASDAQ:AMAT) Receives $593.84 Average Target Price from Brokerages

Applied Materials, Inc. (NASDAQ:AMAT) has earned a consensus recommendation of “Moderate Buy” from the thirty-four ratings firms that are currently covering the firm, Marketbeat.com reports. Six equities research analysts have rated the stock with a hold rating, twenty-seven have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $593.8387.

A number of research analysts recently commented on AMAT shares. Bank of America increased their target price on shares of Applied Materials from $540.00 to $720.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Jefferies Financial Group boosted their price target on shares of Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a research report on Friday, June 26th. Zacks Research upgraded shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Erste Group Bank raised Applied Materials from a “hold” rating to a “buy” rating in a report on Monday, April 27th. Finally, Barclays lifted their target price on Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th.

Applied Materials News Roundup

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

• Positive Sentiment: Peer Taiwan Semiconductor Manufacturing announced plans to raise chipmaking prices by up to 10% in 2027, while wafer supplier IQE lifted guidance, reinforcing expectations for strong AI and data-center chip demand and more equipment spending across the semiconductor supply chain. Why Applied Materials (AMAT) Stock Is Up Today
• Positive Sentiment: Applied Materials’ installed base services business appears to be a growing recurring-revenue engine, with Applied Global Services revenue rising to $1.665 billion from $1.42 billion a year earlier as fab utilization improves. Is AMAT’s Installed Base Business Built for Long-Term Growth?
• Positive Sentiment: Industry commentary continues to point to AI-driven semiconductor growth as a tailwind for AMAT, with analysts highlighting the company as a beneficiary of sustained demand for advanced chips and manufacturing equipment. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Neutral Sentiment: Applied Materials also joined CuspAI’s AI Materials Foundry as a founding member, a strategic move that could support long-term materials discovery efforts, though it is not an immediate earnings catalyst. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery
• Negative Sentiment: Some market commentary flagged seasonal weakness for AMAT heading into late July, which could temper momentum if investors focus on near-term trading patterns. Three Stocks Just Flashed Seasonal Signals

Applied Materials Price Performance

AMAT stock opened at $564.55 on Friday. The business has a 50 day moving average price of $537.43 and a 200 day moving average price of $418.14. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The stock has a market cap of $448.23 billion, a price-to-earnings ratio of 53.01, a PEG ratio of 1.34 and a beta of 1.57. Applied Materials has a fifty-two week low of $154.46 and a fifty-two week high of $739.67.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results 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. The company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm’s revenue was up 11.4% on a year-over-year basis. During the same period in the prior year, the firm posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities research analysts anticipate that Applied Materials will post 12.14 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently declared 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 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 currently 19.91%.

Insiders Place Their Bets

In other Applied Materials news, CEO Gary E. Dickerson sold 71,727 shares of Applied Materials stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the transaction, the chief executive officer directly owned 1,695,164 shares in the company, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares of the company’s stock, valued at $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in Applied Materials by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock worth $19,731,523,000 after acquiring an additional 330,197 shares during the period. Capital Research Global Investors raised its stake 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 purchasing an additional 17,829,377 shares during the last quarter. Morgan Stanley raised its stake in shares of Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after purchasing an additional 373,012 shares during the last quarter. Norges Bank acquired a new stake in shares of Applied Materials during the fourth quarter worth $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Applied Materials by 17.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock worth $2,746,769,000 after purchasing an additional 1,558,749 shares during the period. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.