Applied Materials (NASDAQ:AMAT) Stock Jumps 3.5% – Here’s What Happened

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price was up 3.5% on Thursday. The company traded as high as $533.88 and last traded at $529.30. Approximately 6,046,453 shares changed hands during trading, a decline of 24% from the average daily volume of 7,955,545 shares. The stock had previously closed at $511.38.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Expanded AI packaging partnership: BE Semiconductor Industries (Besi) will join Applied Materials’ $5 billion EPIC Center as an innovation partner. The collaboration will expand beyond hybrid bonding into 3D integrated-circuit assembly, thermo-compression bonding, panel-scale packaging, and photonics—markets that could benefit from rising AI infrastructure spending. Applied Materials and Besi Expand Strategic Partnership
• Positive Sentiment: Memory demand supports the growth outlook: Investor commentary cited AI-compute expansion and memory shortages as drivers that could extend AMAT’s growth runway. Applied’s partnership with KIOXIA also targets denser memory structures, multi-chip stacking, and advanced materials for AI-focused devices. AI Compute Expansion and Memory Shortages Extend Applied Materials’ Growth Runway
• Positive Sentiment: Improving technical momentum: AMAT recently moved above its 50-day moving average, a signal that technical investors may interpret as confirmation of a renewed short-term uptrend. Applied Materials Recently Broke Out Above the 50-Day Moving Average
• Neutral Sentiment: Valuation remains a consideration: Analysts view Applied Materials as offering broad AI-related exposure at a lower valuation than some semiconductor-equipment peers, though the stock’s strong performance has increased expectations for continued execution.
• Negative Sentiment: Some caution after the rally: One analyst trimmed the price target despite forecasting higher 2027 sales and profit, while commentary warned that record tool sales may not represent a sustainable new normal. These factors could limit near-term upside if semiconductor spending slows.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on AMAT. Erste Group Bank downgraded shares of Applied Materials from a “buy” rating to a “hold” rating in a research report on Wednesday, August 5th. Morgan Stanley lowered their price target on Applied Materials from $642.00 to $563.00 and set an “equal weight” rating on the stock in a research report on Monday. New Street Research decreased their target price on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating for the company in a research note on Friday, August 14th. Wall Street Zen raised shares of Applied Materials from a “hold” rating to a “buy” rating in a research report on Saturday, September 26th. Finally, Citigroup reissued a “buy” rating and issued a $710.00 price objective (up from $550.00) on shares of Applied Materials in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $629.38.

Applied Materials Trading Up 3.5%

The business has a fifty day moving average price of $486.07 and a 200-day moving average price of $474.12. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The company has a market cap of $420.05 billion, a P/E ratio of 45.63, a PEG ratio of 1.42 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. During the same quarter last year, the company earned $2.48 earnings per share. The firm’s quarterly 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. On average, analysts forecast 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. Stockholders of record on Thursday, November 19th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s payout ratio is presently 18.28%.

Insider Transactions at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total transaction of $3,594,375.00. Following the transaction, the chief financial officer directly 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Judy Bruner sold 1,000 shares of Applied Materials stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director owned 25,544 shares of the company’s stock, valued at $11,877,960. This trade represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. raised its stake in Applied Materials by 10.5% in the second quarter. QRG Capital Management Inc. now owns 215,839 shares of the manufacturing equipment provider’s stock valued at $156,051,000 after purchasing an additional 20,447 shares in the last quarter. Envestnet Asset Management Inc. grew its stake in shares of Applied Materials by 7.1% during the second quarter. Envestnet Asset Management Inc. now owns 1,068,335 shares of the manufacturing equipment provider’s stock worth $715,458,000 after buying an additional 70,642 shares during the last quarter. Andra AP fonden increased its holdings in Applied Materials by 34.4% in the 2nd quarter. Andra AP fonden now owns 126,229 shares of the manufacturing equipment provider’s stock worth $91,264,000 after purchasing an additional 32,340 shares in the last quarter. State Street Corp raised its holdings in Applied Materials by 85.4% in the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock valued at $50,267,184,000 after buying an additional 32,018,892 shares during the last quarter. Finally, Twin Peaks Capital Ltd bought a new position in shares of Applied Materials during the second quarter valued at $12,291,000. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

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.