Applied Materials (NASDAQ:AMAT) Shares Climb 5.1% – Here’s Why

Applied Materials, Inc. (NASDAQ:AMAT) shares were up 5.1% during trading on Wednesday. The stock traded as high as $421.83 and last traded at $416.00. Approximately 6,974,052 shares changed hands during trading, a decline of 11% from the average daily volume of 7,865,519 shares. The stock had previously closed at $395.93.

Key Applied Materials News

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

• Positive Sentiment: Applied Materials’ planned move to raise its Besi stake to 20% is strengthening its exposure to hybrid bonding, a packaging technology that could benefit from rising AI-chip complexity. TIKR describes a bullish long-term scenario, with a potential price target of approximately $806 versus a roughly $628 Wall Street target. Applied Materials hybrid bonding analysis
• Positive Sentiment: Recent coverage highlights a quarter with 51% growth and argues that AMAT trades at about 23 times forward earnings, a valuation that may look reasonable if AI-related semiconductor-equipment demand remains strong. The company also recently exceeded earnings and revenue estimates and issued fourth-quarter EPS guidance of $3.82–$4.22. Applied Materials growth and valuation analysis
• Neutral Sentiment: AMAT is attracting unusually high investor attention, but the Zacks reports primarily review the company’s prospects rather than identify a new fundamental catalyst. Zacks Applied Materials investor attention report
• Negative Sentiment: Compared with Taiwan Semiconductor Manufacturing, Applied Materials has shown a flatter revenue trajectory and less consistent quarter-over-quarter growth. That comparison may reinforce concerns that AMAT’s elevated valuation already discounts substantial AI-driven demand. Applied Materials versus Taiwan Semiconductor Manufacturing

Analyst Ratings Changes

Several brokerages have recently weighed in on AMAT. Berenberg Bank increased their price target on Applied Materials from $575.00 to $675.00 and gave the company a “buy” rating in a research note on Monday, August 17th. JPMorgan Chase & Co. lifted their price objective on Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a research note on Friday, August 14th. HSBC reduced their target price on Applied Materials from $683.00 to $641.00 and set a “buy” rating on the stock in a report on Friday, August 14th. Weiss Ratings downgraded shares of Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, September 9th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $600.00 target price on shares of Applied Materials in a research report on Wednesday, October 14th. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $632.70.

Applied Materials Trading Down 7.5%

The company has a market cap of $309.58 billion, a price-to-earnings ratio of 33.63, a P/E/G ratio of 1.16 and a beta of 1.60. The company has a current ratio of 2.42, a quick ratio of 1.79 and a debt-to-equity ratio of 0.20. The firm’s 50-day moving average price is $457.66 and its 200 day moving average price is $443.63.

Applied Materials (NASDAQ:AMAT) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) 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 the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities analysts expect that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Insider Activity at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of the stock in a transaction 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 transaction, the chief financial officer directly owned 128,613 shares in the company, valued at $61,637,780.25. This trade represents a 5.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Adam Sanders sold 725 shares of Applied Materials stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at approximately $1,732,245.36. The trade was a 18.56% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 9,225 shares of company stock valued at $4,454,181 in the last three months. Corporate insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Harborfront Financial Group LLC bought a new stake in Applied Materials during the 2nd quarter worth approximately $27,000. Orion Capital Management LLC bought a new position in shares of Applied Materials in the second quarter valued at approximately $33,000. Highland Investment Advisors LLC bought a new position in shares of Applied Materials in the second quarter valued at approximately $33,000. BOK Financial Private Wealth Inc. bought a new position in shares of Applied Materials in the second quarter valued at approximately $41,000. Finally, Curry Webb Wealth Management LLC purchased a new position in shares of Applied Materials during the third quarter valued at approximately $30,000. Institutional investors and hedge funds own 80.56% of the company’s stock.

Applied Materials Company Profile

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.