Applied Materials (NASDAQ:AMAT) Trading 3.3% Higher – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s share price traded up 3.3% during trading on Monday . The stock traded as high as $599.62 and last traded at $585.78. 11,616,960 shares traded hands during mid-day trading, an increase of 53% from the average session volume of 7,586,380 shares. The stock had previously closed at $567.25.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Citi raised its price target on Applied Materials, boosting confidence that AI infrastructure spending and demand for memory-chip manufacturing tools will keep growth strong. Applied Materials surges as Citi lifts target on AI demand boom
• Positive Sentiment: The company unveiled SENZ, an integrated AI/AR smart-glasses visual platform, expanding its story beyond semiconductor equipment into next-generation optics and wearable tech. EssilorLuxottica and Applied Materials Join Forces to Advance Augmented Reality Optics Platforms for Next-Generation Smart Glasses
• Positive Sentiment: Applied Materials and EssilorLuxottica announced a long-term partnership to develop AR and AI smart-eyewear optics, suggesting an additional growth avenue and validating AMAT’s materials expertise. EssilorLuxottica, Applied Materials strike deal to develop smart glasses, AR technology
• Positive Sentiment: Multiple reports highlighted record highs and strong momentum for chip-equipment stocks, with AMAT benefiting from the broader AI-driven rally in semiconductor capital equipment. Applied Materials Stock Is One Of the S&P 500 Leaders Today. It’s AI.

Analyst Ratings Changes

AMAT has been the subject of a number of research reports. Barclays boosted their price target on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Citigroup boosted their price target on Applied Materials from $550.00 to $710.00 and gave the company a “buy” rating in a research report on Wednesday. B. Riley Financial boosted their price objective on Applied Materials from $530.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. JPMorgan Chase & Co. boosted their price objective on Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a research note on Friday, May 15th. Finally, Wall Street Zen upgraded Applied Materials from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Twenty-seven research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $489.16.

Applied Materials Stock Performance

The company has a 50 day moving average of $441.16 and a 200 day moving average of $360.55. The firm has a market cap of $470.75 billion, a price-to-earnings ratio of 55.67, a PEG ratio of 1.58 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 announced its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same quarter in the prior year, the firm posted $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. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.1 EPS for the current fiscal year.

Applied Materials Announces Dividend

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 issued 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 dividend yield of 0.4%. Applied Materials’s dividend payout ratio is 19.91%.

Insider Activity at Applied Materials

In other news, Director Thomas J. Iannotti sold 9,250 shares of the company’s stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 40,559 shares of the company’s stock, valued at approximately $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Omkaram Nalamasu sold 24,263 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 189,767 shares of company stock valued at $107,769,409. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. Private Wealth Management Group LLC grew its holdings 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 buying an additional 25 shares in the last quarter. One Day In July LLC grew its holdings 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 buying an additional 26 shares in the last quarter. Pinnacle Bancorp Inc. grew its holdings in Applied Materials by 1.3% in the 1st quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after buying an additional 27 shares in the last quarter. Horst & Graben Wealth Management LLC grew its holdings in Applied Materials by 2.1% in the 1st quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after buying an additional 27 shares in the last quarter. Finally, Warther Private Wealth LLC grew its holdings in Applied Materials by 1.5% in the 4th quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after buying an additional 28 shares in the last quarter. Institutional investors and hedge funds 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.