Applied Materials, Inc. (NASDAQ:AMAT) Receives $593.84 Average PT from Analysts

Applied Materials, Inc. (NASDAQ:AMAT) has received a consensus rating of “Moderate Buy” from the thirty-four ratings firms that are covering the company, Marketbeat reports. Six research analysts have rated the stock with a hold recommendation, twenty-seven have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $593.8387.

A number of research firms have recently weighed in on AMAT. Mizuho increased their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 8th. Argus upped their price target 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. Wells Fargo & Company upped their price target on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Erste Group Bank raised Applied Materials from a “hold” rating to a “buy” rating in a research report on Monday, April 27th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Applied Materials from $450.00 to $550.00 and gave the company a “buy” rating in a research note on Friday, May 15th.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials is still viewed favorably versus a peer in advanced packaging, with commentary highlighting its AI-related packaging exposure, broad chipmaking portfolio, and high-margin services as reasons it may be a safer long-term bet. AMAT vs. Q: Which Advanced Packaging Stock is a Safer Bet Right Now?
• Positive Sentiment: Analysts and market commentary continue to point to AI-led semiconductor demand, with Applied Materials repeatedly cited as one of the stocks benefiting from ongoing chip investment and stronger equipment spending. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Positive Sentiment: Applied Materials announced it will report fiscal third-quarter 2026 results on August 13, and recent previews suggest analysts expect another double-digit earnings increase, which can support sentiment ahead of the print. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Neutral Sentiment: The company’s short-interest update appears to be data-noisy, showing zero shares outstanding and no meaningful days-to-cover signal, so it is unlikely to be a real trading driver.
• Neutral Sentiment: Applied Materials remains part of a broader semiconductor sector that is experiencing profit-taking and valuation-driven consolidation after a powerful AI rally, which is weighing on sentiment across the group. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing?
• Negative Sentiment: The pullback in semiconductor names suggests investors are locking in gains and reassessing high expectations, which is pressuring AMAT along with the rest of the sector despite solid fundamentals.

Applied Materials Trading Down 4.7%

Applied Materials stock opened at $536.25 on Friday. The stock has a 50-day moving average price of $544.21 and a 200 day moving average price of $423.10. The company has a market capitalization of $425.76 billion, a price-to-earnings ratio of 50.35, a price-to-earnings-growth ratio of 1.36 and a beta of 1.57. Applied Materials has a 52 week low of $154.46 and a 52 week high of $739.67. 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 earnings per share 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 company had revenue of $7.91 billion for 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. Applied Materials’s quarterly 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. Sell-side analysts anticipate that Applied Materials will post 12.14 EPS for the current year.

Applied Materials Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is 19.91%.

Insider Activity at Applied Materials

In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $590.76, for a total value of $5,092,941.96. Following the sale, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’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 sale, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 278,088 shares of company stock valued at $169,654,805 in the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Materials

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Evolve Private Wealth LLC grew its position in Applied Materials by 59.0% in the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after acquiring an additional 1,067 shares in the last quarter. Worth Asset Management LLC purchased a new stake in Applied Materials during the fourth quarter worth about $1,531,000. World Investment Advisors lifted its position in shares of Applied Materials by 4.5% during the fourth quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock worth $21,149,000 after purchasing an additional 3,508 shares in the last quarter. WealthPlan Investment Management LLC acquired a new stake in shares of Applied Materials during the fourth quarter worth about $1,082,000. Finally, Baker Chad R boosted its stake in shares of Applied Materials by 76.6% in the fourth quarter. Baker Chad R now owns 16,530 shares of the manufacturing equipment provider’s stock valued at $4,297,000 after purchasing an additional 7,170 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.