Applied Materials (NASDAQ:AMAT) Stock Price Up 15% – Should You Buy?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price rose 15% during mid-day trading on Thursday . The stock traded as high as $508.54 and last traded at $501.77. 12,011,086 shares were traded during trading, an increase of 44% from the average session volume of 8,316,559 shares. The stock had previously closed at $436.45.

Applied Materials News Summary

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

• Positive Sentiment: Semiconductor stocks rallied this week on strong technology earnings, while three semiconductor ETFs ranked among the largest recipients of new investor cash. The sector-wide buying provides a favorable backdrop for Applied Materials. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally
• Positive Sentiment: A bullish analysis maintains a “Strong Buy” view after AMAT’s substantial multiyear advance, citing the company’s exposure to AI-driven semiconductor equipment demand and continued operating momentum. Applied Materials: Why I’m Maintaining A Strong Buy After A 45% Run
• Positive Sentiment: Zacks highlighted Applied Materials’ AI-driven momentum, record results, expanding margins and improving customer visibility. These factors reinforce expectations for durable growth. AMAT recently exceeded quarterly earnings and revenue estimates, with revenue increasing year over year and upbeat quarterly earnings guidance. The Zacks Analyst Blog Highlights Applied Materials
• Neutral Sentiment: Coverage of Lam Research’s surge indicates that AI equipment demand was already visible in industry results. This supports the semiconductor-equipment cycle generally, although it does not provide a company-specific update for AMAT. Lam Research Stock’s Surge Was Building In Plain Sight
• Negative Sentiment: Despite long-term support from initiatives such as the AI Materials Foundry, one valuation analysis argues that AMAT may not be a bargain after a 218.9% five-year gain. The elevated valuation and high expectations could limit additional upside or increase sensitivity to any slowdown in AI-related spending. Applied Materials Stock May Not Be A Bargain Despite AI Materials Foundry News

Wall Street Analysts Forecast Growth

AMAT has been the subject of several recent analyst reports. KeyCorp upped their price target on Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Sanford C. Bernstein reiterated an “outperform” rating and set a $525.00 price objective on shares of Applied Materials in a research report on Friday, May 15th. Barclays boosted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a report on Thursday, June 11th. HSBC restated a “buy” rating and set a $683.00 target price on shares of Applied Materials in a research report on Monday. Finally, Mizuho raised their target price on shares of Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Applied Materials presently has an average rating of “Moderate Buy” and a consensus price target of $599.19.

Applied Materials Price Performance

The firm has a market cap of $403.07 billion, a PE ratio of 47.67, a PEG ratio of 1.27 and a beta of 1.57. The firm has a fifty day simple moving average of $550.86 and a two-hundred day simple moving average of $429.98. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51.

Applied Materials (NASDAQ:AMAT) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, topping 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 business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. During the same period in the prior year, the firm earned $2.39 EPS. The company’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts predict that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Announces Dividend

The firm 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 dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.

Insider Transactions at Applied Materials

In related news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated 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 completion of the transaction, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Prabu G. Raja sold 50,000 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $505.28, for a total value of $25,264,000.00. Following the sale, the insider directly owned 356,642 shares in the company, valued at $180,204,069.76. The trade was a 12.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last quarter. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several large investors have recently modified their holdings of AMAT. JFS Wealth Advisors LLC boosted its stake in Applied Materials by 4.3% during the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock worth $296,000 after buying an additional 17 shares during the period. Stonebridge Financial Group LLC raised its stake in shares of Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after acquiring an additional 21 shares during the period. Basecamp Wealth Advisors LLC raised its stake in shares of Applied Materials by 0.7% in the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after acquiring an additional 22 shares during the period. Financial Management Professionals Inc. lifted its holdings in shares of Applied Materials by 2.2% in the 2nd quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock worth $752,000 after acquiring an additional 22 shares during the last quarter. Finally, Elevation Wealth Partners LLC lifted its holdings in shares of Applied Materials by 34.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after acquiring an additional 24 shares during the last quarter. 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.