Applied Materials (NASDAQ:AMAT) Shares Climb 2.7% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price traded up 2.7% on Monday. The company traded as high as $393.18 and last traded at $387.59. 6,129,359 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 7,885,900 shares. The stock had previously closed at $377.24.

Key Applied Materials News

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

• Positive Sentiment: SK Hynix’s forecast of a memory shortage extending into 2030 suggested that chipmakers may need to build additional production capacity for years. That could support sustained demand for Applied Materials’ wafer-fabrication equipment. Chip Equipment Stocks Rally as SK Hynix Signals Memory Shortage Into 2030
• Positive Sentiment: Applied Materials plans to raise its ownership of BE Semiconductor Industries to approximately 20% from 9%, deepening cooperation in hybrid bonding and advanced chip-packaging technologies used in AI and high-performance computing. The move reinforces AMAT’s positioning in next-generation semiconductor manufacturing. Shares in BE Semiconductor Jump After Applied Materials Raises Stake to 20%
• Positive Sentiment: Analysts remain constructive on the stock, including a recent Buy rating from Bernstein. Investors are also looking ahead to a potentially strong fourth-quarter report, with expectations for double-digit earnings growth supported by AI-related chip demand. Applied Materials Receives a Buy from Bernstein
• Positive Sentiment: Industry research projects rapid expansion in epitaxial wafer and chip technology, with demand tied to electric vehicles, telecommunications, AI and power electronics. Applied Materials is identified as one of the leading suppliers positioned to benefit from that growth. Epitaxial Wafer and Chip Technology Global Strategic Business Report 2026
• Neutral Sentiment: Reports highlighted that AMAT has experienced a volatile recent period despite strong longer-term returns. The stock’s valuation and upcoming earnings release leave investors focused on whether AI demand can translate into sustained orders and results.
• Negative Sentiment: Potential constraints include equipment supply bottlenecks and Applied Materials’ exposure to China. The company also joined other large issuers objecting to tokenized versions of its shares offered under an SEC innovation framework, adding a governance and market-structure issue rather than a direct earnings catalyst. Applied Materials Moved, What Is Drawing Fresh Attention?

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Citigroup reissued a “buy” rating and set a $710.00 price objective (up from $550.00) on shares of Applied Materials in a research note on Monday, August 3rd. TD Cowen reaffirmed a “buy” rating and issued a $700.00 target price on shares of Applied Materials in a research note on Friday, August 14th. New Street Research cut their target price on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a report on Friday, August 14th. Susquehanna increased their target price on shares of Applied Materials from $575.00 to $900.00 and gave the stock a “positive” rating in a report on Tuesday, June 30th. Finally, Erste Group Bank cut shares of Applied Materials from a “buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Thirty analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $632.70.

Applied Materials Stock Performance

The company has a market cap of $330.14 billion, a price-to-earnings ratio of 35.86, a price-to-earnings-growth ratio of 1.05 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock has a 50-day moving average price of $463.24 and a 200 day moving average price of $441.94.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share 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 analysts’ expectations of $8.99 billion. During the same quarter in the previous year, the business posted $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio is currently 18.28%.

Insider Transactions at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the transaction, the director directly owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This represents a 3.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Brice Hill sold 7,500 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 9,225 shares of company stock valued at $4,454,181 over the last quarter. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

Several hedge funds and other institutional investors have recently modified their holdings of the company. Parcion Private Wealth LLC grew its holdings in shares of Applied Materials by 10.8% during the third quarter. Parcion Private Wealth LLC now owns 4,244 shares of the manufacturing equipment provider’s stock worth $2,170,000 after buying an additional 413 shares in the last quarter. Partners Wealth Management LLC acquired a new stake in Applied Materials in the 3rd quarter valued at approximately $382,000. Soltis Investment Advisors LLC lifted its stake in Applied Materials by 23.0% in the 3rd quarter. Soltis Investment Advisors LLC now owns 27,560 shares of the manufacturing equipment provider’s stock valued at $14,094,000 after acquiring an additional 5,145 shares in the last quarter. Founders Financial Securities LLC lifted its stake in Applied Materials by 56.0% in the 3rd quarter. Founders Financial Securities LLC now owns 1,053 shares of the manufacturing equipment provider’s stock valued at $538,000 after acquiring an additional 378 shares in the last quarter. Finally, ERn Financial LLC lifted its stake in Applied Materials by 5.2% in the 3rd quarter. ERn Financial LLC now owns 590 shares of the manufacturing equipment provider’s stock valued at $302,000 after acquiring an additional 29 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.