Applied Materials (NASDAQ:AMAT) Trading Down 8.4% – Should You Sell?

Shares of Applied Materials, Inc. (NASDAQ:AMAT) were down 8.4% during trading on Wednesday . The company traded as low as $436.33 and last traded at $436.45. 10,085,396 shares traded hands during trading, an increase of 22% from the average session volume of 8,289,400 shares. The stock had previously closed at $476.46.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials remains exposed to long-term growth in AI-related wafer-fabrication spending. An investment-fund review cited the company as a beneficiary of increased semiconductor manufacturing investment, supporting the longer-term demand outlook. Applied Materials Rose on AI-Driven Wafer Fabrication Spending
• Neutral Sentiment: Investor searches for AMAT have increased, indicating heightened attention to the stock, but the report provides no new fundamental catalyst or change to earnings expectations. Investors Heavily Search Applied Materials
• Negative Sentiment: Broad market selling intensified as crude oil surged amid renewed U.S.-Iran tensions, while investors awaited the Federal Reserve’s interest-rate decision. Higher energy prices and rate uncertainty are weighing on high-valuation technology and semiconductor shares. Oil Spikes 7%, Nasdaq 100 Sinks Before Fed
• Negative Sentiment: Semiconductor stocks, including Applied Materials, continued to retreat as investors questioned the sustainability and financing of AI infrastructure spending and grew more concerned about competition from Chinese chip-equipment suppliers. Reports that China is advancing domestic immersion DUV tools add a potential long-term threat to demand from Chinese fabs. Semiconductor Stocks Trade Down
• Negative Sentiment: Weakness in KLA and other equipment makers is creating a negative read-through for the wafer-fabrication equipment group. Analysts have questioned whether KLA’s growth can meet expectations despite its upbeat forecast, reinforcing concerns about elevated semiconductor-equipment valuations. KLA Stock Is on Pace for Worst Month Since 1987

Analysts Set New Price Targets

AMAT has been the topic of a number of research reports. Susquehanna boosted their price objective on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. Cantor Fitzgerald boosted their target price on Applied Materials from $650.00 to $850.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Zacks Research raised shares of Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. Citigroup lifted their target price on Applied Materials from $550.00 to $710.00 and gave the company a “buy” rating in a research note on Wednesday, June 17th. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on shares of Applied Materials from $450.00 to $550.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $599.19.

Applied Materials Trading Down 8.4%

The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. The business has a 50 day moving average of $547.67 and a 200-day moving average of $426.93. The firm has a market capitalization of $346.52 billion, a P/E ratio of 40.98, a PEG ratio of 1.31 and a beta of 1.57.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating the consensus estimate of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The firm’s revenue was up 11.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors 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 annualized dividend and a yield of 0.5%. Applied Materials’s dividend payout ratio is presently 19.91%.

Insider Buying and Selling

In other Applied Materials news, insider Prabu G. Raja sold 50,000 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total transaction of $25,264,000.00. Following the sale, the insider directly owned 356,642 shares of the company’s stock, valued at approximately $180,204,069.76. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president owned 146,916 shares of the company’s stock, valued at $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 278,088 shares of company stock worth $169,654,805 over the last three months. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds have recently added to or reduced their stakes in AMAT. Financial Freedom LLC bought a new stake in shares of Applied Materials during the 1st quarter worth about $28,000. Elevation Wealth Partners LLC grew its position in Applied Materials by 34.8% during the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after buying an additional 24 shares in the last quarter. Cornerstone Financial Management LLC bought a new position in Applied Materials during the 4th quarter worth $25,000. Whipplewood Advisors LLC raised its stake in Applied Materials by 218.8% in the first quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new position in shares of Applied Materials in the 4th quarter valued at approximately $26,000. 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.