William Blair Initiates Coverage on Applied Materials (NASDAQ:AMAT)

Equities research analysts at William Blair began coverage on shares of Applied Materials (NASDAQ:AMAT) in a report issued on Tuesday. The firm set a “market perform” rating on the manufacturing equipment provider’s stock.

A number of other brokerages have also recently weighed in on AMAT. HC Wainwright set a $850.00 price objective on Applied Materials in a research note on Monday, June 29th. Argus upped their price objective on Applied Materials from $420.00 to $500.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th. Citigroup reiterated a “buy” rating on shares of Applied Materials in a research note on Monday, August 3rd. Raymond James Financial set a $650.00 target price on Applied Materials in a report on Wednesday, June 10th. Finally, JPMorgan Chase & Co. increased their price target on Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a report on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $603.23.

Applied Materials Stock Up 1.3%

AMAT stock traded up $6.86 during midday trading on Tuesday, hitting $528.98. The company’s stock had a trading volume of 475,775 shares, compared to its average volume of 8,160,478. Applied Materials has a 52-week low of $154.46 and a 52-week high of $739.67. The firm has a 50-day simple moving average of $560.75 and a 200-day simple moving average of $439.93. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22. The firm has a market capitalization of $419.99 billion, a P/E ratio of 49.53, a PEG ratio of 1.37 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The firm had revenue of $7.91 billion for the quarter, compared to analyst estimates of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business’s quarterly revenue was up 11.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities analysts forecast that Applied Materials will post 12.17 EPS for the current year.

Insider Buying and Selling

In related news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director owned 40,559 shares in the company, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the business’s stock in a transaction that occurred on 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 owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This represents a 6.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 278,088 shares of company stock worth $169,654,805. Corporate insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AMAT. Brighton Jones LLC grew its position in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after acquiring an additional 2,771 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares in the last quarter. Forefront Wealth Partners LLC purchased a new stake in Applied Materials during the 2nd quarter worth $410,000. Schnieders Capital Management LLC. increased its stake in Applied Materials by 30.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after buying an additional 3,469 shares during the period. Finally, Sei Investments Co. lifted its holdings in Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after buying an additional 157,426 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Jim Cramer identified AMAT, Lam Research and KLA as key beneficiaries of a data-center memory production bottleneck, highlighting the semiconductor-equipment group’s potential exposure to sustained AI infrastructure spending. Is Lam Research, KLA, or Applied Materials the Best Chip Equipment Buy? Jim Cramer Weighs In
• Positive Sentiment: Analysts have raised at least one FY2027 EPS forecast, while pre-earnings commentary points to Applied Materials’ broad technology portfolio and AI-driven growth as reasons to remain constructive. FY2027 EPS Forecast for Applied Materials Lifted by Analyst
• Neutral Sentiment: Wall Street expects roughly $3.39 in quarterly EPS and approximately $9 billion in revenue for fiscal Q3. The report is a major near-term catalyst after the stock moved substantially below its 52-week high. Applied Materials Earnings Preview
• Neutral Sentiment: Options markets imply the possibility of a double-digit move around earnings, signaling elevated volatility as investors focus on guidance, AI-related demand and China exposure. Earnings Volatility Watch
• Negative Sentiment: William Blair maintained a Hold rating, citing strong AI fundamentals but arguing that AMAT’s valuation and competitive risks limit additional upside. With a P/E near 49, investors may be demanding particularly strong results and guidance. Analyst Maintains Hold on Applied Materials

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.