Applied Materials (NASDAQ:AMAT) Stock Price Up 5.7% – Here’s What Happened

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 5.7% during trading on Thursday . The company traded as high as $331.00 and last traded at $319.08. 11,217,008 shares were traded during mid-day trading, an increase of 44% from the average session volume of 7,777,954 shares. The stock had previously closed at $301.89.

Trending Headlines about Applied Materials

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

• Positive Sentiment: TSMC’s earnings beat and 35% profit growth lifted confidence in broad semiconductor demand, boosting equipment makers like Applied Materials as customers accelerate capex. Chip stocks pop after TSMC’s earnings beat boosts confidence in industrywide demand
• Positive Sentiment: Barclays upgraded AMAT citing increased AI-related spending by chipmakers, a catalyst for stronger equipment orders and higher revenue visibility. Applied Materials surges after Barclays upgrade stock on AI spending
• Positive Sentiment: Multiple Wall Street firms raised ratings/targets (Stifel, RBC, others highlighted by Blockonomi), signaling renewed analyst confidence and contributing to the rally. Applied Materials (AMAT) Stock: Wall Street Upgrades Signal Confidence in Chip Equipment Leader
• Positive Sentiment: Coverage roundups show broad analyst optimism (23 analysts surveyed), which supports momentum and reduces downside risk from mixed short-term data. A Glimpse Into The Expert Outlook On Applied Materials Through 23 Analysts
• Positive Sentiment: Zacks notes AMAT’s FY25 HBM revenue reached $1.5B and the company aims to double that to $3B using hybrid-bonding leadership and the Kinex tool — a clear medium-term growth driver. Applied Materials FY25 HBM Revenues Hit $1.5B: A New Growth Driver?
• Positive Sentiment: Zacks and other education pieces highlight AMAT’s growth profile and favorable style scores, reinforcing buy-side interest for longer-term portfolios. Here’s Why Applied Materials (AMAT) is a Strong Growth Stock
• Positive Sentiment: Media coverage (Barron’s, MSN, Investing) points to AMAT benefiting directly from TSMC’s heavy spending plans, framing Applied as a primary beneficiary of renewed fab investment. ASML, Lam Research, Applied Materials Surge. Why Chip Stocks Are Getting a Boost.
• Positive Sentiment: Bank of America and other forecasts cited by coverage expect significant upside for AMAT shares, supporting the positive analyst momentum. Bank of America Forecasts Strong Price Appreciation for Applied Materials (NASDAQ:AMAT) Stock

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Jefferies Financial Group increased their price target on Applied Materials from $260.00 to $360.00 and gave the company a “buy” rating in a report on Monday, December 15th. Bank of America boosted their price target on Applied Materials from $300.00 to $350.00 and gave the company a “buy” rating in a research note on Tuesday. DZ Bank upgraded shares of Applied Materials from a “strong sell” rating to a “hold” rating in a research note on Friday, November 14th. UBS Group raised shares of Applied Materials from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $250.00 to $285.00 in a report on Tuesday, November 25th. Finally, Barclays raised shares of Applied Materials from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $250.00 to $360.00 in a report on Thursday. Twenty-three equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $278.86.

Applied Materials Price Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The company has a market capitalization of $253.01 billion, a P/E ratio of 36.76, a P/E/G ratio of 3.15 and a beta of 1.67. The firm’s fifty day moving average is $257.75 and its 200 day moving average is $216.05.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, topping analysts’ consensus estimates of $2.11 by $0.06. The firm had revenue of $6.80 billion for the quarter, compared to analysts’ expectations of $6.68 billion. Applied Materials had a net margin of 24.67% and a return on equity of 39.26%. The business’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same period in the prior year, the business posted $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. As a group, analysts predict that Applied Materials, Inc. will post 9.38 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, March 12th. Investors of record on Thursday, February 19th will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, February 19th. Applied Materials’s dividend payout ratio (DPR) is presently 21.20%.

Insiders Place Their Bets

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the sale, the senior vice president owned 84,351 shares in the company, valued at $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $255.53, for a total value of $155,617.77. Following the sale, the chief accounting officer directly owned 4,413 shares in the company, valued at approximately $1,127,653.89. The trade was a 12.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 8,609 shares of company stock valued at $2,044,898. 0.24% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Marquette Asset Management LLC boosted its stake in Applied Materials by 150.0% in the 3rd quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares in the last quarter. Redmont Wealth Advisors LLC purchased a new position in shares of Applied Materials in the third quarter worth $26,000. Maseco LLP acquired a new stake in shares of Applied Materials during the second quarter worth $30,000. Highline Wealth Partners LLC grew its holdings in shares of Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after buying an additional 38 shares during the last quarter. Finally, Financial Gravity Companies Inc. acquired a new position in shares of Applied Materials in the 2nd quarter valued at $31,000. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

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.