Applied Materials (NASDAQ:AMAT) Stock Price Up 1.8% – Still a Buy?

Applied Materials, Inc. (NASDAQ:AMAT) shares traded up 1.8% during trading on Tuesday . The stock traded as high as $472.49 and last traded at $472.46. 5,723,518 shares were traded during mid-day trading, a decline of 29% from the average session volume of 8,050,594 shares. The stock had previously closed at $464.24.

Applied Materials News Summary

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

• Positive Sentiment: India investment supports long-term growth. Applied Materials plans to invest $5 billion in India over the next decade, expanding research, suppliers, supply-chain capabilities and its workforce as the country develops a domestic semiconductor industry. The spending could strengthen AMAT’s strategic position in a potentially important new manufacturing market. Applied Materials Commits $5 Billion to India as Chip Manufacturing Expands
• Positive Sentiment: Services revenue provides more resilience than a purely cyclical equipment business. Applied Global Services grew 22% year over year in the latest quarter, highlighting recurring revenue from maintenance, upgrades and support. That growth may help offset periodic slowdowns in semiconductor-fabrication equipment spending and is a key argument from investors who believe the recent selloff understates AMAT’s earnings durability. What Are AMAT Stock Bears Missing?
• Positive Sentiment: AI chip demand remains a supportive theme. A new ETF focused on semiconductor-equipment companies, rather than chip designers, could increase investor attention toward AMAT and its peers. Analysts and bullish commentators also point to larger, more complex AI chips as a potential driver of equipment demand. New ETF Bets on the Machinery Behind AI Chipmaking
• Neutral Sentiment: Applied Materials will host an investor breakfast during SEMICON West on October 13. Any updated comments on AI demand, customer spending or India could influence expectations, but no new financial guidance was provided. Applied Materials to Host Investor Breakfast Presentation During SEMICON West
• Negative Sentiment: Valuation and semiconductor-cycle risks remain. AMAT has already delivered substantial long-term gains, and skeptics argue that its elevated earnings multiple prices in much of the AI opportunity. A cyclical downturn in fab spending or weaker-than-expected AI investment could pressure earnings and limit further upside.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Barclays increased their target price on Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Royal Bank Of Canada lifted their price target on Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a research report on Friday, August 14th. Sanford C. Bernstein boosted their price objective on Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. UBS Group increased their price objective on Applied Materials from $675.00 to $695.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Finally, Stifel Nicolaus raised their target price on Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $658.45.

Applied Materials Trading Up 1.8%

The stock’s 50 day simple moving average is $495.94 and its 200 day simple moving average is $466.98. The firm has a market cap of $374.94 billion, a PE ratio of 40.73, a PEG ratio of 1.24 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.Applied Materials’s revenue for the quarter was up 24.8% compared to the same quarter last year. During the same period last year, the firm posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials, Inc. will post 12.78 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio is presently 18.28%.

Insider Transactions at Applied Materials

In other Applied Materials news, CFO Brice Hill sold 7,500 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares in the company, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Gary E. Dickerson sold 20,000 shares of Applied Materials stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the completion of the sale, the chief executive officer owned 1,599,843 shares in the company, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 86,821 shares of company stock worth $59,609,471. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. increased its stake in shares of Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock worth $57,993,650,000 after acquiring an additional 1,237,685 shares in the last quarter. State Street Corp grew its holdings in Applied Materials by 85.4% in the second quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock worth $50,267,184,000 after purchasing an additional 32,018,892 shares during the period. Capital Research Global Investors increased its stake in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after purchasing an additional 17,829,377 shares in the last quarter. Norges Bank purchased a new position in shares of Applied Materials during the fourth quarter valued at approximately $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Applied Materials by 17.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock valued at $2,746,769,000 after purchasing an additional 1,558,749 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

About Applied Materials

Applied Materials, Inc is a global provider of materials engineering solutions used to manufacture semiconductors, displays and other advanced electronic products. The company develops and supplies equipment, services and software that help customers build and improve the performance of chips and display panels.

Its semiconductor products support processes including deposition, etch, patterning, inspection, metrology and materials modification. Applied Materials also provides equipment and services for display manufacturing, including technologies used in producing liquid-crystal and organic light-emitting diode displays, as well as solutions for adjacent markets such as solar and other specialty applications.

Founded in 1967 and headquartered in Santa Clara, California, Applied Materials serves semiconductor and display manufacturers worldwide through operations, customer-support centers and research and development activities across major technology-producing regions.