Applied Materials (NASDAQ:AMAT) Trading 2.1% Higher – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) rose 2.1% during mid-day trading on Monday . The company traded as high as $519.50 and last traded at $518.21. Approximately 5,950,413 shares changed hands during trading, a decline of 28% from the average daily volume of 8,294,915 shares. The stock had previously closed at $507.67.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials has a strong history of exceeding quarterly earnings estimates, and the latest Zacks analysis says its current Earnings ESP and consensus-estimate trends point to another potential beat. The company’s most recent report also exceeded expectations, with adjusted EPS of $2.86 versus the $2.68 consensus and revenue of $7.91 billion versus $7.68 billion. Will Applied Materials Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Fundamentals remain supportive: recent revenue rose 11.4% year over year, margins and return on equity are strong, and management’s third-quarter fiscal 2026 EPS guidance of $3.16 to $3.56 suggests continued operating momentum. Demand tied to semiconductor manufacturing and artificial intelligence remains an important longer-term catalyst. Applied Materials Earnings Outlook
• Neutral Sentiment: Applied Materials is being discussed alongside equipment peers MKS Instruments and Veeco, where AI-related chip demand and advanced packaging are supporting growth but tariffs, China weakness and uneven industrial spending remain risks. These trends provide a mixed read-through for AMAT’s equipment orders. MKS Instruments Earnings Preview
• Negative Sentiment: Semiconductor stocks came under pressure on concerns that Chinese manufacturers are becoming more competitive, potentially challenging established equipment suppliers and pressuring future pricing or market share. Semiconductor Stocks Sink on China Competition Fears
• Negative Sentiment: One analysis downgraded Applied Materials ahead of earnings despite acknowledging its strong fundamentals, indicating that elevated valuation and the possibility of high expectations could limit upside if results or guidance disappoint. Applied Materials Downgrade Ahead of Earnings

Analysts Set New Price Targets

AMAT has been the subject of a number of analyst reports. Truist Financial set a $575.00 price target on Applied Materials in a report on Thursday, May 28th. Cantor Fitzgerald lifted their price objective on Applied Materials from $650.00 to $850.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Wall Street Zen lowered Applied Materials from a “buy” rating to a “hold” rating in a research report on Saturday. HC Wainwright set a $850.00 target price on Applied Materials in a research note on Monday, June 29th. Finally, Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $603.23.

Applied Materials Stock Up 2.1%

The stock has a market cap of $411.44 billion, a P/E ratio of 48.66, a PEG ratio of 1.29 and a beta of 1.61. 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 stock’s fifty day simple moving average is $550.86 and its 200-day simple moving average is $430.85.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the business earned $2.39 EPS. The firm’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. On average, research analysts anticipate that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Announces Dividend

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

Insider Buying and Selling

In other news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the transaction, the director owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president directly owned 134,631 shares in the company, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 278,088 shares of company stock valued at $169,654,805. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently made changes to their positions in the business. Financial Freedom LLC acquired a new stake in shares of Applied Materials during the first quarter worth $28,000. Elevation Wealth Partners LLC increased its holdings in shares of Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock valued at $67,000 after purchasing an additional 24 shares during the period. Cornerstone Financial Management LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at about $25,000. Whipplewood Advisors LLC lifted its position in shares of Applied Materials by 218.8% in the first 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. Finally, Wilkerson Advisory Group LLC acquired a new stake in shares of Applied Materials during the fourth quarter worth approximately $26,000. 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.