Applied Materials (NASDAQ:AMAT) Trading Down 1.2% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares dropped 1.2% on Wednesday . The stock traded as low as $360.66 and last traded at $369.34. Approximately 5,036,476 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 7,835,996 shares. The stock had previously closed at $373.99.

Key Applied Materials News

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

• Positive Sentiment: Improving wafer‑fab spending visibility — several investor notes and market pieces cite clearer capex signals from semiconductor customers, which supports equipment orders and revenue visibility for AMAT. Applied Materials (AMAT) Surged on Improving Wafer-Fab Spending Visibility
• Positive Sentiment: Strong AI chip demand and resilient operating performance — portfolio manager letters highlight AMAT as a direct beneficiary of AI-driven chip buildouts and point to solid recent results and margins that underpin earnings upside. Applied Materials, Inc. (AMAT) Gained on Strong AI Chip Demand and Resilient Operating Performance
• Positive Sentiment: Government/industry policy tailwinds — coverage of a new U.S. semiconductor investment push (~$4T consortium scope cited) reinforces that equipment suppliers like AMAT sit centrally in potential domestic chipmaking expansion. US Semiconductor Push Adds New Thread To Applied Materials Story
• Neutral Sentiment: Analyst sentiment and “should you buy” pieces — recent Zacks/coverage points to bullish Wall Street views but stops short of major rating moves; useful for sentiment but not an immediate catalyst. Wall Street Bulls Look Optimistic About Applied Materials (AMAT)
• Neutral Sentiment: Investor letters and bullish write‑ups — RiverPark, Renaissance and independent bull notes reiterate AMAT’s exposure to AI and packaging trends; they support conviction but are reiterations rather than new catalysts. Applied Materials (AMAT) Surged on Improving Wafer-Fab Spending Visibility (Investor Letters)
• Negative Sentiment: Short‑interest reports flagged a large increase in March, but the published figures appear inconsistent (zeros reported); the headline could fuel volatility and selling even if the data is unreliable. (internal short‑interest notices)
• Negative Sentiment: Market/sector headwinds — tech rotation and a broader pullback in mega‑cap tech / ETFs temper upside for AMAT despite company‑specific positives; MarketBeat notes tech remains below earlier highs which can drag equipment stocks. As Tech Earnings Grow, This ETF Still Hasn’t Caught Up

Wall Street Analysts Forecast Growth

Several research analysts recently commented on AMAT shares. Barclays raised their price objective on shares of Applied Materials from $360.00 to $450.00 and gave the stock an “overweight” rating in a report on Friday, February 13th. Mizuho boosted their target price on shares of Applied Materials from $370.00 to $410.00 and gave the company an “outperform” rating in a report on Friday, February 13th. Cantor Fitzgerald restated an “overweight” rating and set a $470.00 target price on shares of Applied Materials in a research report on Friday, February 13th. B. Riley Financial reiterated a “buy” rating and issued a $450.00 price target (up from $400.00) on shares of Applied Materials in a research report on Friday, February 13th. Finally, Erste Group Bank assumed coverage on Applied Materials in a research note on Thursday, March 5th. They set a “hold” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and an average price target of $363.46.

Applied Materials Stock Down 1.2%

The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30. The firm has a market cap of $293.11 billion, a P/E ratio of 37.80, a price-to-earnings-growth ratio of 1.61 and a beta of 1.65. The stock’s fifty day moving average is $343.10 and its two-hundred day moving average is $272.87.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate of $2.21 by $0.17. The firm had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period last year, the firm earned $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, research analysts anticipate that Applied Materials, Inc. will post 9.38 earnings per share for the current year.

Applied Materials Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 11th. Investors of record on Thursday, May 21st will be paid a dividend of $0.53 per share. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. This represents a $2.12 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s dividend payout ratio is 18.83%.

Insiders Place Their Bets

In other Applied Materials news, Director Judy Bruner sold 3,969 shares of the company’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $377.02, for a total value of $1,496,392.38. Following the transaction, the director directly owned 28,589 shares in the company, valued at $10,778,624.78. This represents a 12.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Adam Sanders sold 534 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the sale, the chief accounting officer directly owned 4,625 shares in the company, valued at approximately $1,753,615. The trade was a 10.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,003 shares of company stock worth $4,484,189 in the last ninety days. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Materials

Hedge funds have recently bought and sold shares of the stock. Grandfield & Dodd LLC grew its holdings in shares of Applied Materials by 6.9% during the 3rd quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock valued at $55,180,000 after purchasing an additional 17,397 shares during the last quarter. First Trust Advisors LP lifted its stake in Applied Materials by 4.9% in the third quarter. First Trust Advisors LP now owns 3,101,772 shares of the manufacturing equipment provider’s stock worth $635,057,000 after purchasing an additional 145,050 shares during the last quarter. Elo Mutual Pension Insurance Co lifted its stake in Applied Materials by 21.8% in the third quarter. Elo Mutual Pension Insurance Co now owns 96,712 shares of the manufacturing equipment provider’s stock worth $19,801,000 after purchasing an additional 17,288 shares during the last quarter. Canada Post Corp Registered Pension Plan boosted its position in Applied Materials by 82.2% during the third quarter. Canada Post Corp Registered Pension Plan now owns 26,893 shares of the manufacturing equipment provider’s stock valued at $5,512,000 after buying an additional 12,132 shares during the period. Finally, Avity Investment Management Inc. boosted its position in Applied Materials by 1.1% during the third quarter. Avity Investment Management Inc. now owns 223,211 shares of the manufacturing equipment provider’s stock valued at $45,700,000 after buying an additional 2,376 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Applied Materials Company Profile

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.