Applied Materials (NASDAQ:AMAT) Stock Price Up 4.9% After Analyst Upgrade

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 4.9% during mid-day trading on Wednesday after Argus raised their price target on the stock from $420.00 to $500.00. Argus currently has a buy rating on the stock. Applied Materials traded as high as $427.50 and last traded at $426.85. 6,865,496 shares traded hands during trading, a decline of 7% from the average session volume of 7,393,010 shares. The stock had previously closed at $406.91.

Several other analysts have also commented on AMAT. HSBC initiated coverage on Applied Materials in a report on Friday, May 8th. They issued a “buy” rating and a $517.00 price objective on the stock. Morgan Stanley reissued an “equal weight” rating and issued a $502.00 price target (up from $454.00) on shares of Applied Materials in a report on Friday, May 15th. Needham & Company LLC raised their price target on shares of Applied Materials from $440.00 to $530.00 and gave the company a “buy” rating in a research note on Friday, May 15th. UBS Group raised their price target on shares of Applied Materials from $480.00 to $515.00 and gave the company a “buy” rating in a research note on Friday, May 15th. Finally, Jefferies Financial Group raised their target price on Applied Materials from $415.00 to $510.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Twenty-seven analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $465.14.

Insider Buying and Selling at Applied Materials

In other news, Director Judy Bruner sold 3,969 shares of Applied Materials stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the transaction, the director owned 28,589 shares in the company, valued at $10,778,624.78. The trade was a 12.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total value of $202,471.44. Following the transaction, the chief accounting officer owned 4,625 shares in the company, valued at approximately $1,753,615. This represents a 10.35% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 7,003 shares of company stock worth $2,678,139. Insiders own 0.30% of the company’s stock.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials announced that Broadcom will join its EPIC platform as an innovation partner, expanding collaboration on advanced packaging technologies for next-generation AI chips and systems. The deal reinforces AMAT’s role in AI hardware buildout and could support longer-term equipment demand. Applied Materials Announces Broadcom as EPIC Innovation Partner
• Positive Sentiment: Several reports highlighted strong operating leverage at Applied Materials, with AI demand, premium chip tools and recurring services pushing margins to a multi-decade high. That suggests improving profitability as spending on advanced chips rises. Applied Materials Gains From Rising Operating Leverage: What’s Ahead?
• Positive Sentiment: AMAT also landed on Zacks Rank #1 (Strong Buy) momentum-stock lists, and multiple articles pointed to continued upside from recent earnings beats, estimate revisions, and AI spending trends. That kind of momentum coverage can keep investor interest elevated. Best Momentum Stocks to Buy for May 20th
• Neutral Sentiment: Applied Materials received a Supplier Excellence Award from a supplier partner, which is a positive operational signal but likely has limited direct impact on the stock. Applied Energy Systems Receives Supplier Excellence Award from Applied Materials
• Negative Sentiment: At the same time, AMAT was mentioned in a broader semiconductor sell-off tied to concerns about a potential Samsung strike and a TSMC stake sale, which raised supply-chain worries across chip stocks. That sector pressure may weigh on shares even when company fundamentals look strong. MACOM, Applied Materials, and Photronics Shares Are Falling, What You Need To Know

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AMAT. Capital Research Global Investors grew its position in Applied Materials by 119.8% in the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Norges Bank purchased a new position in Applied Materials in the fourth quarter worth approximately $2,858,543,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Applied Materials by 617.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,129,483 shares of the manufacturing equipment provider’s stock worth $1,869,170,000 after purchasing an additional 7,856,576 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Applied Materials by 40.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 12,520,114 shares of the manufacturing equipment provider’s stock worth $2,563,376,000 after purchasing an additional 3,583,751 shares during the last quarter. Finally, Auto Owners Insurance Co increased its position in shares of Applied Materials by 25,824.4% during the 4th quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock worth $86,610,000 after purchasing an additional 3,357,167 shares during the last quarter. 80.56% of the stock is currently owned by hedge funds and other institutional investors.

Applied Materials Stock Up 4.9%

The business has a 50-day moving average of $382.08 and a 200-day moving average of $322.58. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The stock has a market capitalization of $338.75 billion, a price-to-earnings ratio of 40.08, a P/E/G ratio of 1.19 and a beta of 1.66.

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 analysts’ consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The company’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period last year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, sell-side analysts expect that Applied Materials, Inc. will post 11.75 EPS for the current year.

Applied Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.53 dividend. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s payout ratio is presently 19.91%.

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.