Applied Materials (NASDAQ:AMAT) Sets New 52-Week High – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price hit a new 52-week high during trading on Monday . The stock traded as high as $674.99 and last traded at $689.68, with a volume of 4043364 shares trading hands. The stock had previously closed at $626.84.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: KeyBanc lifted its price target to $750, citing further upside ahead of Q3 earnings and reinforcing bullish sentiment on AMAT. Applied Materials (AMAT) Stock Surges 12% on KeyBanc Price Target Upgrade
• Positive Sentiment: Bank of America raised its price target on Applied Materials to $720, while Wells Fargo increased its target to $740 and kept an Overweight rating, adding to the bullish analyst backdrop. Bank of America Just Gave Applied Materials Stock a New Street-High Price Target
• Positive Sentiment: Applied Materials introduced new chipmaking systems aimed at advanced 3D chip architectures for next-generation AI, supporting the company’s growth story in high-demand semiconductor equipment. Applied Materials (AMAT) Introduces Suite of New Chipmaking Systems
• Positive Sentiment: AMAT was added to the Russell Top 50 Index, a move that could increase passive fund ownership and visibility among investors. Applied Materials (AMAT) Joins Russell Top 50 After Leaving Value Indexes
• Neutral Sentiment: Some commentary notes that high expectations are already embedded in AMAT’s valuation, so even a small earnings or guidance miss could spark short-term volatility. This Analyst Sees 20% Upside For AMAT Stock – Says High Expectations Around Applied Materials’ Businesses Create Short-Term Risk
• Neutral Sentiment: One article argues that the company’s equipment-market surge may already be priced into the stock, suggesting upside could be more limited if expectations remain elevated. Applied Materials: Equipment Market Surge Priced Into Stock Price

Wall Street Analyst Weigh In

Several analysts recently commented on AMAT shares. HC Wainwright set a $850.00 target price on Applied Materials in a research report on Monday. 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 target for the company. Truist Financial set a $575.00 price objective on shares of Applied Materials in a research note on Thursday, May 28th. UBS Group upped their price objective on shares of Applied Materials from $515.00 to $570.00 and gave the stock a “buy” rating in a report on Wednesday, June 10th. Finally, Needham & Company LLC boosted their price target on shares of Applied Materials from $440.00 to $530.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Twenty-seven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $541.06.

Applied Materials Price Performance

The company has a 50 day moving average of $473.54 and a two-hundred day moving average of $378.12. The firm has a market cap of $553.49 billion, a P/E ratio of 65.45, a PEG ratio of 1.74 and a beta of 1.67. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same period in the previous year, the business earned $2.39 earnings per share. Applied Materials’s revenue for the quarter 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. Sell-side analysts expect that Applied Materials, Inc. will post 12.1 EPS for the current year.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.3%. Applied Materials’s dividend payout ratio is currently 19.91%.

Insider Activity

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total value of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the transaction, the insider directly owned 346,642 shares in the company, valued at $219,608,106.26. This represents a 2.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 199,767 shares of company stock valued at $114,104,709 in the last ninety days. 0.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Basecamp Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock worth $1,124,000 after buying an additional 22 shares during the period. Private Wealth Management Group LLC boosted its stake in Applied Materials by 4.9% in the 1st quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after purchasing an additional 25 shares during the period. One Day In July LLC boosted its stake in Applied Materials by 2.4% in the 1st quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares during the period. Pinnacle Bancorp Inc. grew its position in Applied Materials by 1.3% during the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares in the last quarter. Finally, Horst & Graben Wealth Management LLC raised its stake in Applied Materials by 2.1% during the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock valued at $446,000 after purchasing an additional 27 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

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.