Applied Materials (NASDAQ:AMAT) Trading Up 7.4% – Still a Buy?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) were up 7.4% during trading on Tuesday . The company traded as high as $572.50 and last traded at $564.55. 7,601,130 shares changed hands during trading, a decline of 9% from the average daily volume of 8,309,979 shares. The stock had previously closed at $525.70.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials joined CuspAI’s new AI Materials Foundry as a founding member, a move aimed at speeding semiconductor materials discovery and addressing chipmaking bottlenecks with AI-driven research. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery
• Positive Sentiment: Analysts highlighted AMAT as a beneficiary of growing AI demand, saying semiconductor equipment makers like Applied Materials can benefit from sustained investment in advanced chips. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Positive Sentiment: Applied Materials’ installed-base services business is showing recurring-revenue strength, 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?
• Neutral Sentiment: Wall Street commentary remained broadly constructive on AMAT, with the article focusing on whether current analyst sentiment supports the stock. Should You Invest in Applied Materials (AMAT) Based on Bullish Wall Street Views?
• Negative Sentiment: Seasonality models flagged a bearish window for AMAT heading into July 23, which could temper near-term momentum. Three Stocks Just Flashed Seasonal Signals
• Negative Sentiment: AMAT also saw a modest prior-session pullback, with shares slipping as part of a broader market dip before today’s rebound. Applied Materials (AMAT) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AMAT. Seaport Research Partners assumed coverage on Applied Materials in a research note on Monday, May 4th. They issued a “buy” rating and a $500.00 price objective for the company. Wells Fargo & Company upped their target price on Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Truist Financial set a $575.00 price target on shares of Applied Materials in a research report on Thursday, May 28th. Mizuho raised their price target on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a report on Wednesday, July 8th. Finally, KeyCorp boosted their price objective on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $593.84.

Applied Materials Trading Up 7.4%

The business has a 50-day moving average of $534.76 and a 200-day moving average of $415.98. 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 1.35 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share 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 company had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period in the prior year, the firm posted $2.39 EPS. The business’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts forecast that Applied Materials, Inc. will post 12.14 earnings per share for the current year.

Applied Materials Announces Dividend

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 $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s payout ratio is presently 19.91%.

Insider Transactions at Applied Materials

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value 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. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction on 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 owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 278,088 shares of company stock valued at $169,654,805 in the last ninety days. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMAT. Vanguard Group Inc. grew its holdings in Applied Materials by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock valued at $19,731,523,000 after purchasing an additional 330,197 shares during the last quarter. Capital Research Global Investors lifted its stake in shares of Applied Materials by 119.8% in 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 buying an additional 17,829,377 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Applied Materials by 3.4% during the 4th quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock worth $2,947,891,000 after buying an additional 373,012 shares during the period. Norges Bank bought a new stake in shares of Applied Materials during the 4th quarter worth $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Applied Materials by 17.1% in the 4th 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 valued at $2,746,769,000 after buying an additional 1,558,749 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

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.