Applied Materials (NASDAQ:AMAT) Shares Gap Down – What’s Next?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) gapped down before the market opened on Tuesday . The stock had previously closed at $592.79, but opened at $545.35. Applied Materials shares last traded at $538.6020, with a volume of 2,316,241 shares.

Applied Materials News Summary

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

• Positive Sentiment: Susquehanna raised its price target on Applied Materials, adding to the bullish analyst backdrop around the stock. Susquehanna Raises Price Target on Applied Materials, Inc. (AMAT)
• Positive Sentiment: Zacks highlighted Applied Materials’ advanced packaging opportunity, noting management’s goal of more than 50% packaging revenue growth in 2026 as AI demand drives HBM, 3D chiplet stacking, and next-generation packaging demand. Can AMAT’s Advanced Packaging Drive Its Next Growth Phase?
• Positive Sentiment: Applied Materials unveiled SENZ to speed development of AI smart glasses, reinforcing the company’s exposure to emerging AI hardware markets. Applied Materials (AMAT) Unveils SENZ To Speed AI Smart Glasses Development
• Positive Sentiment: Applied Materials was also named among Zacks’ top momentum stocks, suggesting technical strength and continued investor interest. Best Momentum Stock to Buy for July 7th
• Neutral Sentiment: Several articles framed AMAT as a high-quality but volatile stock, with recent selling tied to a broader semiconductor and memory-stock downturn rather than company-specific weakness. Every Memory Stock Is Now in a Bear Market: Is Micron, SanDisk, or Applied Materials the Best Buy?
• Negative Sentiment: AMAT was caught in an industry-wide chip selloff after weaker sentiment across memory names and a broader tech pullback, which pressured the stock earlier in the week. What Is Going on With Applied Materials Stock on Tuesday?

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on AMAT. Argus upped their target price on shares of Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. Wolfe Research lifted their price target on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. Wells Fargo & Company boosted their price target 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. 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. Finally, Seaport Research Partners started coverage on Applied Materials in a report on Monday, May 4th. They set a “buy” rating and a $500.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average target price of $573.19.

Applied Materials Trading Up 2.9%

The business’s 50-day moving average price is $509.35 and its 200-day moving average price is $398.54. The firm has a market capitalization of $452.95 billion, a PE ratio of 53.57, a price-to-earnings-growth ratio of 1.54 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share 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 analysts’ expectations of $7.68 billion. During the same quarter in the prior year, the business earned $2.39 EPS. Applied Materials’s quarterly revenue 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. As a group, 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 declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is 19.91%.

Insider Activity

In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares of the company’s stock, valued at $87,184,361.88. This represents a 14.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 278,088 shares of company stock worth $169,654,805 over the last quarter. 0.30% of the stock is owned by insiders.

Institutional Trading of Applied Materials

Hedge funds and other institutional investors have recently made changes to their positions in the company. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at approximately $25,000. Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials during the 4th quarter worth $26,000. Financial Freedom LLC purchased a new position in shares of Applied Materials in the 1st quarter valued at about $28,000. Highline Wealth Partners LLC increased its holdings in shares of Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after purchasing an additional 38 shares in the last quarter. Finally, Joseph Group Capital Management acquired a new stake in shares of Applied Materials in the fourth quarter valued at about $31,000. 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.