Morgan Stanley Cuts Applied Materials (NASDAQ:AMAT) Price Target to $563.00

Applied Materials (NASDAQ:AMAT) had its target price cut by Morgan Stanley from $642.00 to $563.00 in a report published on Monday, MarketBeat Ratings reports. They currently have an equal weight rating on the manufacturing equipment provider’s stock.

Other analysts have also recently issued reports about the company. Jefferies Financial Group upped their target price on Applied Materials from $510.00 to $770.00 and gave the company a “buy” rating in a report on Friday, June 26th. KeyCorp lifted their price target on Applied Materials from $550.00 to $750.00 and gave the stock an “overweight” rating in a report on Monday, June 29th. Wells Fargo & Company boosted their price target on shares of Applied Materials from $715.00 to $740.00 and gave the company an “overweight” rating in a research report on Friday, June 26th. Argus set a $600.00 price objective on shares of Applied Materials and gave the company a “buy” rating in a report on Tuesday, August 18th. Finally, Bank of America cut their price objective on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Applied Materials currently has a consensus rating of “Moderate Buy” and an average target price of $629.38.

Applied Materials Trading Down 0.1%

AMAT opened at $511.38 on Monday. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The company’s 50 day simple moving average is $486.07 and its two-hundred day simple moving average is $474.12. Applied Materials has a 1-year low of $203.40 and a 1-year high of $739.67. The firm has a market capitalization of $405.83 billion, a price-to-earnings ratio of 44.08, a price-to-earnings-growth ratio of 1.42 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business had revenue of $9.12 billion for the quarter, compared to analysts’ expectations of $8.99 billion. During the same period in the previous year, the firm posted $2.48 EPS. The business’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Analysts expect that Applied Materials will post 12.79 EPS for the current fiscal year.

Applied Materials Dividend Announcement

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

Insider Transactions at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $479.25, for a total value of $3,594,375.00. Following the sale, the chief financial officer directly owned 128,613 shares in the company, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Judy Bruner sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $465.00, for a total transaction of $465,000.00. Following the completion of the transaction, the director directly owned 25,544 shares in the company, valued at $11,877,960. The trade was a 3.77% decrease in their position. The SEC filing for this sale provides additional information. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several large investors have recently made changes to their positions in AMAT. Ausdal Financial Partners Inc. acquired a new stake in Applied Materials during the 2nd quarter valued at $4,005,000. Caldwell Investment Management Ltd. purchased a new position in Applied Materials during the second quarter worth $1,589,000. Evolve Private Wealth LLC raised its holdings in shares of Applied Materials by 59.0% in 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 during the last quarter. Principal Financial Group Inc. lifted its position in shares of Applied Materials by 3.0% in the second quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after acquiring an additional 28,982 shares in the last quarter. Finally, Handelsbanken Fonder AB lifted its position in shares of Applied Materials by 29.6% in the second quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider’s stock valued at $334,521,000 after acquiring an additional 105,776 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials News Summary

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

• Positive Sentiment: Applied Materials and KIOXIA announced a partnership at Applied’s $5 billion EPIC Center to develop next-generation memory technologies, including advanced memory-cell structures, multi-chip stacking and materials designed to improve density and performance for AI workloads. The agreement supports AMAT’s long-term exposure to AI-driven memory and advanced packaging demand. Applied Materials and KIOXIA Partner at the EPIC Center to Advance Next-Generation Memory Technology
• Positive Sentiment: Technical coverage remains constructive: AMAT recently moved above its 50-day moving average, a signal that can indicate improving short-term momentum and renewed investor interest. Applied Materials Recently Broke Out Above the 50-Day Moving Average
• Positive Sentiment: Analysts and industry commentary continue to point to AI-led memory demand, improving margins and long-term customer commitments as potential drivers of higher sales and earnings in 2027. AMAT Stock Has Doubled This Year: Analyst Trims Price Target But Sees Higher 2027 Sales and Profit
• Neutral Sentiment: Applied sold a record approximately $7 billion of chipmaking tools in fiscal third-quarter 2026, representing roughly 77% of its $9.1 billion quarterly revenue. The result demonstrates strong demand but also highlights how heavily the investment case depends on continued equipment spending.
• Negative Sentiment: After AMAT shares more than doubled over the past year, at least one analyst reduced the price target despite maintaining a positive longer-term view. The adjustment suggests expectations and valuation have become demanding, limiting near-term upside.
• Negative Sentiment: Market weakness and concern that record tool sales may represent a cyclical peak are weighing on sentiment. With AMAT trading at a high earnings multiple, investors may be looking for evidence that AI and memory demand can support continued growth rather than merely a temporary surge.

About Applied Materials

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.