Applied Materials (NASDAQ:AMAT) Stock Price Down 1.8% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT)’s share price was down 1.8% during trading on Wednesday. The company traded as low as $514.01 and last traded at $520.65. 3,736,668 shares were traded during trading, a decline of 53% from the average daily volume of 7,896,752 shares. The stock had previously closed at $530.27.

Key Applied Materials News

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

• Positive Sentiment: Semiconductor innovation partnership: Applied Materials and UCLA Engineering will collaborate at the EPIC Center to accelerate the transition of semiconductor research into commercial manufacturing. The initiative could strengthen Applied’s technology pipeline and customer relationships. Applied Materials and UCLA Engineering Accelerate Semiconductor Innovation at the EPIC Center
• Positive Sentiment: AI and services momentum: Analysts say Applied’s Applied Global Services (AGS) business is benefiting from AI-related demand, recurring revenue and increasing semiconductor-factory utilization, supporting potential growth through 2030. Can Applied Materials Sustain Momentum in Its AGS Business?
• Positive Sentiment: Customer capital spending supports demand: A former Applied Materials executive said TSMC’s potential capital spending of up to $64 billion may still be insufficient to meet chip demand. Sustained foundry investment would support orders for Applied’s wafer-fabrication equipment. TSMC Plans Up to $64 Billion in Capex
• Positive Sentiment: Improving revenue trajectory: Comparisons with Qualcomm and Marvell indicate that Applied’s revenue growth accelerated during the first half of 2026, improving its position among AI-related semiconductor companies. Applied Materials vs. Qualcomm
• Neutral Sentiment: Brokerage recommendation: The average brokerage recommendation suggests adding AMAT to portfolios, but the report cautions that sell-side analysts can be overly optimistic. Investors may want to weigh the consensus against valuation and company fundamentals. Brokers Suggest Investing in Applied Materials
• Negative Sentiment: Recent underperformance: Applied Materials declined more than the broader market in the latest session, indicating continued sensitivity to semiconductor-sector sentiment and profit-taking.
• Negative Sentiment: Insider selling: Coverage linked the recent decline to insider sales, which can raise concerns about management confidence even when the transactions may be routine or unrelated to business fundamentals. Applied Materials Stock Falls After Insider Selling

Analysts Set New Price Targets

AMAT has been the subject of a number of recent research reports. Citigroup restated a “buy” rating and set a $710.00 price target (up from $550.00) on shares of Applied Materials in a research note on Monday, August 3rd. Argus set a $600.00 price objective on shares of Applied Materials and gave the stock a “buy” rating in a research note on Tuesday, August 18th. William Blair began coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating on the stock. Bank of America cut their target price on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research report on Friday, August 14th. Finally, UBS Group upped their target price on shares of Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus target price of $640.20.

Applied Materials Trading Down 0.2%

The stock has a market capitalization of $403.42 billion, a PE ratio of 43.84, a PEG ratio of 1.45 and a beta of 1.60. The stock’s 50 day moving average price is $488.90 and its 200-day moving average price is $481.64. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts expect that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, November 19th. Applied Materials’s payout ratio is presently 18.28%.

Insider Transactions at Applied Materials

In related news, Director Judy Bruner sold 1,000 shares of the stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the sale, the director owned 25,544 shares in the company, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the sale, the chief accounting officer directly owned 3,181 shares in the company, valued at $1,732,245.36. This trade represents a 18.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 9,225 shares of company stock valued at $4,454,181 over the last 90 days. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Institutional investors have recently added to or reduced their stakes in the stock. State Street Corp grew its stake in Applied Materials by 85.4% during the second quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock valued at $50,267,184,000 after acquiring an additional 32,018,892 shares in the last quarter. Bank of America Corp DE purchased a new stake in Applied Materials in the 2nd quarter worth $5,252,863,000. Auto Owners Insurance Co lifted its stake in Applied Materials by 25,824.4% in the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock worth $86,610,000 after purchasing an additional 3,357,167 shares in the last quarter. Jupiter Topco LLC purchased a new stake in Applied Materials in the 2nd quarter worth $1,512,287,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Applied Materials by 17.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock valued at $2,746,769,000 after purchasing an additional 1,558,749 shares during the last quarter. 80.56% of the stock is owned by hedge funds and other institutional investors.

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.