Applied Materials (NASDAQ:AMAT) Shares Up 4.3% – What’s Next?

Applied Materials, Inc. (NASDAQ:AMAT)’s stock price was up 4.3% on Wednesday . The stock traded as high as $553.75 and last traded at $548.15. Approximately 6,732,141 shares were traded during trading, a decline of 18% from the average daily volume of 8,181,155 shares. The stock had previously closed at $525.61.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials reported record fiscal Q3 revenue of $9.12 billion, up 24.8% year over year, while adjusted EPS of $3.50 exceeded consensus estimates of $8.99 billion in revenue and $3.40 EPS. AI infrastructure demand, advanced packaging and memory growth were key drivers. Applied Materials’ Q3 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Q4 guidance was above Wall Street expectations, with revenue projected at $9.8 billion-$10.8 billion and EPS of $3.82-$4.22 versus consensus estimates of $9.5 billion and $3.65, respectively. Management also cited unusually strong visibility into customer demand extending through fiscal 2027 and beyond. Applied Materials forecasts quarterly revenue above estimates
• Positive Sentiment: Several analysts remained bullish: JPMorgan raised its price target to $660, RBC increased its target to $600, and Needham and TD Cowen maintained Buy or Overweight ratings. Applied Materials Stock Tanks Despite Q3 Beat, Semiconductor Strength
• Neutral Sentiment: Management plans to expand equipment capacity, including a potential doubling of quarterly DRAM-related production by 2028, reinforcing the long-term AI and memory demand opportunity. Investors will need to monitor whether capacity expansion translates into accelerating systems growth. AMAT Stock Extends Slide Overnight Despite Beat
• Negative Sentiment: The earnings beat failed to clear the market’s elevated bar. Analysts cited concerns about gross-margin commentary, the pace of semiconductor-systems growth and intensifying competition, prompting investors to seek evidence that AMAT is outgrowing peers. Applied Materials slips as investors seek faster growth after stellar run
• Negative Sentiment: Some reports highlighted a GAAP EPS shortfall or investment-related loss, while B. Riley reaffirmed Buy but reduced its target to $700 from $790. The mixed analyst reaction suggests near-term valuation and execution concerns are outweighing the favorable fundamentals. Applied Materials Stock Drops Despite Strong Q3 Beat

Analyst Ratings Changes

A number of research firms have recently issued reports on AMAT. TD Cowen reissued a “buy” rating and issued a $700.00 price target on shares of Applied Materials in a research report on Friday. Barclays boosted their price objective on shares of Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a research report on Thursday, June 11th. Zacks Research upgraded shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. JPMorgan Chase & Co. increased their target price on shares of Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, HSBC reissued a “buy” rating and set a $683.00 target price on shares of Applied Materials in a research note on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $624.35.

Applied Materials Trading Down 5.4%

The firm has a market cap of $401.52 billion, a P/E ratio of 47.50, a PEG ratio of 1.38 and a beta of 1.61. The company has a 50 day moving average of $563.06 and a 200 day moving average of $444.45. 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 released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm’s revenue was up 24.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts predict that Applied Materials, Inc. will post 12.22 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently declared 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 is Thursday, August 20th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

Insiders Place Their Bets

In related news, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the sale, the insider owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gary E. Dickerson sold 20,000 shares of the company’s stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the sale, the chief executive officer owned 1,599,843 shares of the company’s stock, valued at $1,176,236,570.46. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 in the last 90 days. 0.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in AMAT. Jones Financial Companies Lllp grew its holdings in Applied Materials by 31.4% during the second quarter. Jones Financial Companies Lllp now owns 611,771 shares of the manufacturing equipment provider’s stock valued at $442,310,000 after purchasing an additional 146,353 shares during the last quarter. Verity Asset Management Inc. bought a new stake in shares of Applied Materials during the 2nd quarter worth $316,000. Park Place Capital Corp boosted its holdings in shares of Applied Materials by 340.1% during the 2nd quarter. Park Place Capital Corp now owns 5,977 shares of the manufacturing equipment provider’s stock worth $4,321,000 after buying an additional 4,619 shares during the period. Peak Asset Management LLC grew its stake in Applied Materials by 29.8% in the 2nd quarter. Peak Asset Management LLC now owns 15,352 shares of the manufacturing equipment provider’s stock valued at $11,100,000 after buying an additional 3,521 shares during the last quarter. Finally, Fiduciary Financial Advisors acquired a new position in Applied Materials in the 2nd quarter valued at $757,000. 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.