Applied Materials (NASDAQ:AMAT) Trading 10.8% Higher – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price rose 10.8% on Monday . The stock traded as high as $708.99 and last traded at $694.64. Approximately 13,930,802 shares were traded during trading, an increase of 72% from the average session volume of 8,097,463 shares. The stock had previously closed at $626.84.

Key Applied Materials News

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

• Positive Sentiment: Analysts continued to raise their outlooks on Applied Materials, including a price-target hike from Cantor Fitzgerald to $850 and higher earnings estimates from Erste Group Bank, reinforcing expectations for strong future growth. Applied Materials (AMAT) Remains Favored as ASML Emerges as Top Catch-Up Trade
• Positive Sentiment: Applied Materials has been one of the hottest names in semiconductors, hitting all-time highs and posting its best monthly rally since 1975 as AI-related chip spending lifted demand forecasts and sentiment toward chip-equipment makers. Stock Of The Month: Applied Materials Notches Best Rally Since 1975
• Positive Sentiment: Broader semiconductor strength is also supporting AMAT, with investors buying into chip ETFs and equipment stocks as Micron’s AI-led memory surge and the broader $2 trillion AI chip market rally keep the group in focus. Semiconductor ETFs to Buy as Micron Leads 2T AI-Led Chip Market Rally
• Neutral Sentiment: News flow around AMAT remains heavily focused on valuation and technical momentum, with some commentary warning the stock is extremely overbought and may be vulnerable to a pullback after its sharp run. Stock Of The Day: Is This The Top For Applied Materials?
• Negative Sentiment: One market-wide article noted that chip stocks were the main drag on otherwise stronger trading, which could limit near-term upside for Applied Materials if semiconductor sentiment cools. Meta, CoreWeave, Salesforce, Corning, Bending Spoons, and More Stocks That Explain Today’s Market

Wall Street Analysts Forecast Growth

AMAT has been the topic of several recent research reports. The Goldman Sachs Group upped their price objective on Applied Materials from $390.00 to $520.00 and gave the company a “buy” rating in a research report on Friday, May 15th. UBS Group upped their target price on shares of Applied Materials from $515.00 to $570.00 and gave the company a “buy” rating in a report on Wednesday, June 10th. TD Cowen raised their price target on shares of Applied Materials from $450.00 to $525.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Wells Fargo & Company boosted their price objective on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Applied Materials from $400.00 to $515.00 and gave the company an “overweight” rating in a research note on Friday, May 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $553.56.

Applied Materials Stock Down 10.0%

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $516.80 billion, a price-to-earnings ratio of 61.12, a price-to-earnings-growth ratio of 1.93 and a beta of 1.67. The firm has a 50 day moving average price of $486.16 and a two-hundred day moving average price of $384.29.

Applied Materials (NASDAQ:AMAT) last posted its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $7.68 billion. During the same quarter in the prior year, the company earned $2.39 EPS. The company’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities analysts expect that Applied Materials, Inc. will post 12.11 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given 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 0.3%. Applied Materials’s dividend payout ratio is presently 19.91%.

Insiders Place Their Bets

In related news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Prabu G. Raja sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was 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 owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 199,767 shares of company stock valued at $114,104,709. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Financial Bank Trust Division purchased a new position in Applied Materials in the second quarter valued at about $366,000. Adelphi Trust Co acquired a new position in shares of Applied Materials in the 2nd quarter valued at approximately $751,000. Trust Co of the South raised its position in shares of Applied Materials by 22.2% in the 2nd quarter. Trust Co of the South now owns 1,007 shares of the manufacturing equipment provider’s stock valued at $728,000 after purchasing an additional 183 shares in the last quarter. VectorGlobal IAG Inc. purchased a new position in shares of Applied Materials during the 1st quarter valued at approximately $1,644,000. Finally, Basecamp Wealth Advisors LLC boosted its stake in shares of Applied Materials by 0.7% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after buying an additional 22 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.