Applied Materials (NASDAQ:AMAT) Trading 1.6% Higher – Time to Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares rose 1.6% on Thursday . The company traded as high as $576.49 and last traded at $562.80. 5,647,829 shares were traded during trading, a decline of 32% from the average session volume of 8,281,805 shares. The stock had previously closed at $553.92.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials rose after TSMC’s planned price increases and a major Arizona expansion reinforced expectations for sustained demand for semiconductor equipment used in AI and data-center chip production. Applied Materials (AMAT) Jumps On TSMC Expansion As Fair Value Debate Stays Open
• Positive Sentiment: Investors are also looking ahead to Applied Materials’ Aug. 13 fiscal third-quarter results, with analysts expecting another double-digit earnings increase, which supports the bullish narrative around the stock. What to Expect From Applied Materials’ Next Quarterly Earnings Report
• Positive Sentiment: Applied Materials was highlighted in multiple sector screens as a wide-moat semiconductor stock and a beneficiary of AI enthusiasm, adding to sentiment that the company remains a core pick in the chip equipment rally. Buy These 5 Semiconductor Stocks Charged Up by AI Enthusiasm
• Neutral Sentiment: The company formally announced that it will report fiscal third-quarter 2026 results on Aug. 13, giving investors a near-term catalyst but no new operating update yet. Applied Materials to Report Fiscal Third Quarter 2026 Results on Aug-13-2026
• Neutral Sentiment: Technical commentary suggested the shares may be due for a rebound after a recent pullback, but this was framed more as a trading setup than a fundamental change. History Says Applied Materials Stock Looks Ripe for Rebound

Wall Street Analyst Weigh In

AMAT has been the subject of a number of recent analyst reports. Wolfe Research upped their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday, May 15th. Truist Financial set a $575.00 target price on Applied Materials in a research note on Thursday, May 28th. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Royal Bank Of Canada upped their target price on Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Finally, Susquehanna increased their price target on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $593.84.

Applied Materials Trading Up 1.6%

The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The firm has a fifty day simple moving average of $539.78 and a two-hundred day simple moving average of $420.23. The firm has a market capitalization of $446.84 billion, a P/E ratio of 52.85, a price-to-earnings-growth ratio of 1.43 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. During the same period in the previous year, the company posted $2.39 earnings per share. The business’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts anticipate that Applied Materials, Inc. will post 12.14 earnings per share for the current fiscal year.

Applied Materials Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is presently 19.91%.

Insider Buying and Selling at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares in the company, valued at $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director directly owned 40,559 shares in the company, valued at approximately $24,326,071.43. The trade was a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 278,088 shares of company stock worth $169,654,805 in the last three months. 0.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Materials

Several hedge funds have recently bought and sold shares of AMAT. Evolve Private Wealth LLC raised its stake in shares of Applied Materials by 59.0% during the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock worth $983,000 after acquiring an additional 1,067 shares in the last quarter. Worth Asset Management LLC purchased a new stake in shares of Applied Materials in the 4th quarter valued at $1,531,000. World Investment Advisors boosted its stake in shares of Applied Materials by 4.5% in the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock valued at $21,149,000 after purchasing an additional 3,508 shares in the last quarter. WealthPlan Investment Management LLC bought a new position in shares of Applied Materials during the 4th quarter valued at $1,082,000. Finally, Baker Chad R grew its holdings in shares of Applied Materials by 76.6% during the 4th quarter. Baker Chad R now owns 16,530 shares of the manufacturing equipment provider’s stock valued at $4,297,000 after purchasing an additional 7,170 shares during the last quarter. Hedge funds and other institutional investors 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.