Applied Materials (NASDAQ:AMAT) Hits New 52-Week High on Strong Earnings

Applied Materials, Inc. (NASDAQ:AMAT) reached a new 52-week high during mid-day trading on Friday following a stronger than expected earnings report. The company traded as high as $376.32 and last traded at $365.4140, with a volume of 5107368 shares traded. The stock had previously closed at $328.39.

The manufacturing equipment provider reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.19. The firm had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.88 billion. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.The firm’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same quarter last year, the business posted $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be given a dividend of $0.46 per share. The ex-dividend date is Thursday, February 19th. This represents a $1.84 dividend on an annualized basis and a yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is 21.20%.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Q1 beat and bullish guidance — AMAT topped EPS and revenue estimates and guided Q2 above Street expectations, citing strong orders for AI processors and tighter memory supply that should support equipment demand. Applied Materials jumps as AI demand drives chipmaking tool orders (Reuters)
• Positive Sentiment: Analyst upgrades and higher price targets — Multiple firms upgraded AMAT (Summit to Buy) and raised targets (Mizuho, Needham, B. Riley among others), reinforcing bullish expectations for WFE/AI tailwinds. Summit upgrades Applied Materials to Buy (Yahoo)
• Positive Sentiment: Management outlook and strategic wins — Management projects strong secular growth (CEO flagged >20% WFE revenue growth opportunity) and announced Samsung joining AMAT’s new EPIC R&D center — supports longer‑term market share and product roadmap. Applied Materials stock jumps after earnings (MarketWatch)
• Neutral Sentiment: Export‑probe resolution removes regulatory overhang — AMAT reached a settlement with the U.S. Commerce Dept. that closes DOJ/SEC reviews, which reduces legal uncertainty even as the company acknowledges compliance issues. Applied Materials Reaches Resolution with the U.S. Department of Commerce (GlobeNewswire)
• Neutral Sentiment: Macro and market context — Broader market headwinds (soft futures ahead of CPI) and sector rotation can amplify volatility in semicap names despite company‑specific strength. 5 Things to Know Before the Stock Market Opens (Investopedia)
• Negative Sentiment: Settlement cost — the BIS settlement carries a cash payment (~$252.5M) that is a one‑time hit and raises governance/compliance questions for some investors. Applied Materials to pay $252 million to resolve illegal chip exports (Reuters)
• Negative Sentiment: Valuation and profit‑taking risk — AMAT has run sharply higher YTD and some voices have flagged stretched multiples and near‑term profit‑taking, which likely explains today’s pullback after the post‑earnings spike. Applied Materials stock falls ahead of earnings as Lynx sounds caution (Investing.com)

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on AMAT shares. B. Riley Financial reissued a “buy” rating on shares of Applied Materials in a research note on Monday. Stifel Nicolaus set a $450.00 target price on Applied Materials in a research report on Friday. BNP Paribas Exane upgraded Applied Materials to a “hold” rating in a report on Monday, November 17th. Barclays reaffirmed an “overweight” rating and set a $450.00 price objective on shares of Applied Materials in a research note on Friday. Finally, Susquehanna raised shares of Applied Materials from a “neutral” rating to a “positive” rating and raised their target price for the stock from $180.00 to $400.00 in a research report on Sunday, January 11th. Twenty-seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $338.93.

Insider Transactions at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 609 shares of Applied Materials stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the transaction, the chief accounting officer directly owned 4,413 shares of the company’s stock, valued at $1,127,653.89. The trade was a 12.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Teri A. Little sold 4,000 shares of the business’s stock in a transaction that occurred 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 sale, the senior vice president owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,609 shares of company stock valued at $2,044,898 in the last quarter. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in the business. IFG Advisory LLC lifted its holdings in Applied Materials by 1,008.1% during the 2nd quarter. IFG Advisory LLC now owns 36,156 shares of the manufacturing equipment provider’s stock worth $6,619,000 after buying an additional 32,893 shares during the period. Grandfield & Dodd LLC raised its position in shares of Applied Materials by 6.9% during the third quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock worth $55,180,000 after acquiring an additional 17,397 shares during the last quarter. Atlantic Union Bankshares Corp raised its position in shares of Applied Materials by 23.0% during the second quarter. Atlantic Union Bankshares Corp now owns 12,643 shares of the manufacturing equipment provider’s stock worth $2,315,000 after acquiring an additional 2,363 shares during the last quarter. Sienna Gestion lifted its stake in shares of Applied Materials by 10.2% in the second quarter. Sienna Gestion now owns 113,221 shares of the manufacturing equipment provider’s stock worth $18,924,000 after acquiring an additional 10,468 shares during the period. Finally, Westfield Capital Management Co. LP boosted its holdings in Applied Materials by 13,360.6% in the second quarter. Westfield Capital Management Co. LP now owns 694,431 shares of the manufacturing equipment provider’s stock valued at $127,129,000 after acquiring an additional 689,272 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Price Performance

The firm has a market cap of $287.56 billion, a price-to-earnings ratio of 41.74, a P/E/G ratio of 3.02 and a beta of 1.70. The business’s 50-day simple moving average is $293.46 and its two-hundred day simple moving average is $235.24. The company has a current ratio of 2.61, a quick ratio of 1.87 and a debt-to-equity ratio of 0.32.

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.