Applied Materials (NASDAQ:AMAT) Stock Falls 1.8% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT) was down 1.8% during mid-day trading on Wednesday. The company traded as low as $514.01 and last traded at $520.65. 3,736,668 shares were traded during trading, a decline of 53% from the average daily volume of 7,896,752 shares. The stock had previously closed at $530.27.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Applied Materials and Intel announced expanded collaboration on next-generation transistors, interconnects and advanced packaging for AI chips. Work at Applied’s EPIC Center and Intel’s Oregon R&D campus could strengthen AMAT’s role in advanced chip manufacturing and create longer-term equipment demand. Applied Materials and Intel Collaborate to Accelerate Chipmaking Innovations for AI-Driven Computing
• Positive Sentiment: Recent partnerships involving KIOXIA and BE Semiconductor Industries are expanding AMAT’s exposure to advanced memory, packaging and interconnect technologies—areas expected to benefit from rising AI-chip complexity. Applied Materials AI Chip Memory and Packaging Partnerships
• Positive Sentiment: Analyst and industry commentary remains constructive: AI-driven wafer-fabrication-equipment demand, dependable earnings, growth in Applied Global Services and capacity expansion are cited as potential catalysts. The company recently exceeded quarterly EPS and revenue expectations, with revenue up 24.8% year over year. 4 Top Chip Stocks With Dependable Earnings to Ride the AI Boom
• Neutral Sentiment: AMAT has substantially outperformed the broader market over the past year, but bullish theses acknowledge that investors must justify the stock’s premium valuation relative to peers such as Lam Research and KLA. Applied Materials vs. LRCX and KLAC
• Negative Sentiment: Comparisons with NVIDIA highlight a potential growth concern: NVIDIA has generated substantially higher revenue and free cash flow, while Applied Materials’ revenue growth has been more uneven. This may be contributing to profit-taking after AMAT’s strong run. Applied Materials vs. Nvidia Revenue Trends
• Negative Sentiment: Chief Accounting Officer Adam Sanders sold 725 shares to cover tax withholding on vested equity awards. The relatively small, tax-related transaction is a limited negative signal but could add to short-term investor caution. Applied Materials CAO Stock Sale

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. B. Riley Financial reaffirmed a “buy” rating and set a $700.00 target price (down from $790.00) on shares of Applied Materials in a research note on Friday, August 14th. HSBC reduced their price objective on Applied Materials from $683.00 to $641.00 and set a “buy” rating for the company in a research report on Friday, August 14th. Barclays lifted their price objective on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research note on Thursday, June 11th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Finally, The Goldman Sachs Group raised their price target on Applied Materials from $645.00 to $670.00 and gave the company a “buy” rating in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $640.20.

Applied Materials Stock Performance

The company has a market capitalization of $413.19 billion, a PE ratio of 44.88, a price-to-earnings-growth ratio of 1.51 and a beta of 1.60. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The business’s fifty day moving average is $487.06 and its two-hundred day moving average is $479.42.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same period last year, the business posted $2.48 EPS. The company’s revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities research analysts predict that Applied Materials, Inc. will post 12.79 earnings per share for the current year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a yield of 0.4%. Applied Materials’s payout ratio is 18.28%.

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares in the company, valued at $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the transaction, the director directly owned 25,544 shares of the company’s stock, valued at $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 9,225 shares of company stock worth $4,454,181. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

A number of large investors have recently added to or reduced their stakes in AMAT. Ausdal Financial Partners Inc. bought a new stake in shares of Applied Materials in the 2nd quarter valued at about $4,005,000. Caldwell Investment Management Ltd. purchased a new stake in shares of Applied Materials in the 2nd quarter worth approximately $1,589,000. CX Institutional boosted its stake in shares of Applied Materials by 333.3% during the third quarter. CX Institutional now owns 25,853 shares of the manufacturing equipment provider’s stock valued at $12,631,000 after purchasing an additional 19,886 shares in the last quarter. Evolve Private Wealth LLC increased its holdings in Applied Materials by 59.0% during the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after buying an additional 1,067 shares during the period. Finally, Principal Financial Group Inc. increased its holdings in Applied Materials by 3.0% during the second quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after buying an additional 28,982 shares during the period. Institutional investors own 80.56% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.