Applied Materials (NASDAQ:AMAT) Trading Up 2.5% – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) shot up 2.5% during trading on Friday . The company traded as high as $330.19 and last traded at $327.01. 11,349,419 shares traded hands during mid-day trading, an increase of 40% from the average session volume of 8,105,051 shares. The stock had previously closed at $319.08.

More Applied Materials News

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

• Positive Sentiment: TSMC’s $52–$56B 2026 capex plan creates direct, near‑term demand for AMAT’s specialized tools (backside power delivery and other advanced deposition equipment), making AMAT a primary beneficiary of the AI-driven fab buildout. The $56 Billion Draft: Follow TSMC’s CapEx Stream
• Positive Sentiment: Coverage noting AMAT hit a new all‑time high ties the rally to TSMC raising full‑year capex guidance and bullish commentary from KeyBanc that AMAT shares can push higher in 2026. Applied Materials Stock Just Hit a New All-Time High. Should You Buy AMAT Here?
• Positive Sentiment: Multiple sell‑side upgrades and higher price targets (Barclays, RBC, Stifel, KeyBanc) are lifting sentiment and driving inflows into the shares. Analyst actions often accelerate rallies in equipment names when foundry capex ramps. Applied Materials (AMAT) Stock: Wall Street Upgrades Signal Confidence in Chip Equipment Leader
• Positive Sentiment: TSMC’s earnings beat and guidance lifted the whole semiconductor ecosystem; CNBC and others flagged broad chip‑stock strength that benefits equipment suppliers like AMAT. Chip stocks pop after TSMC’s earnings beat boosts confidence in industrywide demand
• Positive Sentiment: AMAT’s high‑bandwidth memory (HBM) business and Kinex system are highlighted as a growth vector (company aims to double HBM revenue), supporting longer‑term revenue upside beyond foundry capex. Applied Materials FY25 HBM Revenues Hit $1.5B: A New Growth Driver?
• Neutral Sentiment: Zacks and other outlets note rising retail/trader attention and provide context on valuation and style scores — helpful for positioning but not an immediate fundamental change. Here is What to Know Beyond Why Applied Materials, Inc. (AMAT) is a Trending Stock
• Negative Sentiment: Near‑term earnings may soften: previews for the upcoming quarter point to a single‑digit EPS decline, so while orders tied to TSMC drive medium‑term upside, expect some short‑term volatility around the next report. Here’s What to Expect From Applied Materials’ Next Earnings Report

Wall Street Analysts Forecast Growth

Several brokerages recently commented on AMAT. DZ Bank raised shares of Applied Materials from a “strong sell” rating to a “hold” rating in a research note on Friday, November 14th. Mizuho set a $275.00 price target on shares of Applied Materials in a report on Friday, January 9th. Wells Fargo & Company raised their price objective on Applied Materials from $290.00 to $350.00 and gave the company an “overweight” rating in a report on Thursday. Craig Hallum restated a “hold” rating and set a $190.00 price objective on shares of Applied Materials in a research report on Friday, November 14th. Finally, JPMorgan Chase & Co. increased their target price on Applied Materials from $220.00 to $260.00 and gave the company an “overweight” rating in a research report on Friday, November 14th. Twenty-three equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $282.25.

Applied Materials Stock Up 2.5%

The stock has a 50-day moving average price of $259.46 and a 200-day moving average price of $216.77. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.61 and a quick ratio of 1.87. The company has a market capitalization of $259.30 billion, a P/E ratio of 37.67, a P/E/G ratio of 3.12 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last announced its earnings results on Thursday, November 13th. The manufacturing equipment provider reported $2.17 EPS for the quarter, beating the consensus estimate of $2.11 by $0.06. The business had revenue of $6.80 billion for the quarter, compared to analysts’ expectations of $6.68 billion. Applied Materials had a return on equity of 39.26% and a net margin of 24.67%.The firm’s revenue was down 3.5% on a year-over-year basis. During the same period in the prior year, the business posted $2.32 earnings per share. Applied Materials has set its Q1 2026 guidance at 1.980-2.380 EPS. On average, research analysts predict that Applied Materials, Inc. will post 9.38 EPS for the current fiscal year.

Applied Materials Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, February 19th. Applied Materials’s dividend payout ratio (DPR) is currently 21.20%.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, CAO Adam Sanders sold 609 shares of the company’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the sale, the chief accounting officer owned 4,413 shares of the company’s stock, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Teri A. Little sold 4,000 shares of the stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $238.24, for a total value of $952,960.00. Following the sale, the senior vice president owned 84,351 shares of the company’s stock, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 8,609 shares of company stock worth $2,044,898. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Materials

Several institutional investors have recently added to or reduced their stakes in AMAT. Omnia Family Wealth LLC acquired a new position in shares of Applied Materials during the 4th quarter valued at $235,000. Tenon Financial LLC bought a new stake in Applied Materials in the fourth quarter valued at $234,000. Postrock Partners LLC acquired a new position in shares of Applied Materials during the fourth quarter valued at about $241,000. Values Added Financial LLC acquired a new position in shares of Applied Materials during the fourth quarter valued at about $252,000. Finally, Formidable Asset Management LLC boosted its position in shares of Applied Materials by 33.8% during the 4th quarter. Formidable Asset Management LLC now owns 9,073 shares of the manufacturing equipment provider’s stock worth $2,332,000 after purchasing an additional 2,290 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

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.