Applied Materials (NASDAQ:AMAT) Trading Down 1.1% – Should You Sell?

Applied Materials, Inc. (NASDAQ:AMAT) shares were down 1.1% during mid-day trading on Thursday . The company traded as low as $384.30 and last traded at $389.90. Approximately 5,098,007 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 7,425,133 shares. The stock had previously closed at $394.26.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: New tools for next‑gen chips: AMAT unveiled the Precision Selective Nitride PECVD and Trillium ALD systems aimed at 2nm AI and HPC chips — this strengthens its content per chip and positions it to capture AI/HPC node transitions. Article Title
• Positive Sentiment: Potential large customer for fabs: Bloomberg/press reports say Elon Musk’s Terafab team has contacted AMAT (among others) for equipment quotes — if that project proceeds it could add meaningful new demand. Article Title
• Positive Sentiment: Analyst bullishness: B. Riley raised its price target on AMAT to $485 (Buy), reflecting a multi‑year AI-related outlook upgrade that supports higher valuations. Article Title
• Neutral Sentiment: Positive industry signals: peers TSMC and (expected) Lam Research results point to strong AI/HPC and DRAM spending, which is supportive for AMAT as an equipment supplier. Article Title Article Title
• Neutral Sentiment: Momentum & coverage: multiple Zacks pieces note heavy investor interest and recent strong short‑term performance (momentum), which can amplify moves but may also lead to volatile reversals. Article Title
• Negative Sentiment: Competitive and valuation pressure: relative comparisons (NVDA vs AMAT) and broader peer valuations (ASML/US peers) highlight that investors may prefer higher‑growth alternatives like NVIDIA, which could limit further multiple expansion for AMAT. Article Title
• Negative Sentiment: Near‑term softness in revenue: most recent quarter showed slight year‑over‑year revenue decline (about -2.1%), so while earnings beat and guidance were constructive, demand remains lumpy and could lead to volatility if orders don’t accelerate.

Analyst Ratings Changes

A number of equities analysts have issued reports on AMAT shares. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 17th. KeyCorp raised their price target on Applied Materials from $380.00 to $450.00 and gave the company an “overweight” rating in a report on Friday, February 13th. KGI Securities upgraded Applied Materials to an “outperform” rating and set a $425.00 price target for the company in a report on Friday, February 13th. Erste Group Bank upgraded Applied Materials to a “hold” rating in a report on Tuesday, March 24th. Finally, Citigroup raised their price target on Applied Materials from $400.00 to $420.00 and gave the company a “buy” rating in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $368.29.

Applied Materials Price Performance

The company has a debt-to-equity ratio of 0.30, a current ratio of 2.71 and a quick ratio of 1.94. The company has a market capitalization of $315.02 billion, a PE ratio of 40.63, a PEG ratio of 1.74 and a beta of 1.64. The firm has a 50-day moving average of $359.89 and a 200 day moving average of $294.65.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings data 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. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The company had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same period last year, the firm posted $2.38 earnings per share. Applied Materials’s revenue was down 2.1% compared to the same quarter last year. 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 fiscal 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 given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s payout ratio is 18.83%.

Insiders Place Their Bets

In other Applied Materials news, Director Judy Bruner sold 3,969 shares of the firm’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 of the company’s stock, valued at approximately $10,778,624.78. This trade represents a 12.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Adam Sanders sold 534 shares of the firm’s stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the completion of the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. The trade was a 10.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 12,003 shares of company stock valued at $4,484,189. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Warther Private Wealth LLC boosted its position in Applied Materials by 1.5% in the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after purchasing an additional 28 shares during the last quarter. Tradition Wealth Management LLC boosted its position in Applied Materials by 3.1% in the fourth quarter. Tradition Wealth Management LLC now owns 1,031 shares of the manufacturing equipment provider’s stock worth $265,000 after purchasing an additional 31 shares during the last quarter. Hoxton Planning & Management LLC boosted its position in Applied Materials by 1.4% in the fourth quarter. Hoxton Planning & Management LLC now owns 2,208 shares of the manufacturing equipment provider’s stock worth $567,000 after purchasing an additional 31 shares during the last quarter. Godsey & Gibb Inc. lifted its position in shares of Applied Materials by 2.6% during the 4th quarter. Godsey & Gibb Inc. now owns 1,298 shares of the manufacturing equipment provider’s stock valued at $334,000 after buying an additional 33 shares in the last quarter. Finally, Family Capital Management Inc. lifted its position in shares of Applied Materials by 0.8% during the 4th quarter. Family Capital Management Inc. now owns 4,227 shares of the manufacturing equipment provider’s stock valued at $1,086,000 after buying an additional 33 shares in the last quarter. 80.56% of the stock is owned by hedge funds and other 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.