Applied Materials (NASDAQ:AMAT) Shares Gap Up – Here’s Why

Posted by Brenda Bartman on Sep 29th, 2026

Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report)’s stock price gapped up prior to trading on Tuesday. The stock had previously closed at $486.76, but opened at $504.71. Applied Materials shares last traded at $505.3820, with a volume of 1,352,669 shares.

Applied Materials News Roundup

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

Positive Sentiment: Wall Street’s average price target implies approximately 34.2% potential upside, while positive earnings-estimate revisions suggest analysts remain constructive on Applied Materials’ revenue and profit outlook. Wall Street Analysts Believe Applied Materials Could Rally 34.23%
Positive Sentiment: Although Morgan Stanley lowered its target, the revised $563 target remains above the stock’s recent level, indicating the firm still sees moderate upside. Applied Materials’ strong recent earnings, revenue growth, and exposure to semiconductor-equipment demand provide additional support for the bullish case. Why a Price Target Cut Isn’t All Bad News
Neutral Sentiment: A retrospective article highlights the substantial long-term return generated by a $1,000 investment in Applied Materials a decade ago. While this reinforces the company’s historical shareholder performance, it is not a direct near-term catalyst. Applied Materials Long-Term Investment Return
Negative Sentiment: Morgan Stanley cut its Applied Materials price target from $642 to $563 and maintained an “equal weight” rating. The reduction signals more cautious expectations for valuation or semiconductor-equipment demand, even though the new target remains higher than the recent trading level. Morgan Stanley Cuts Applied Materials Price Target

Wall Street Analyst Weigh In

A number of research firms have weighed in on AMAT. UBS Group raised their price target on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Berenberg Bank lifted their target price on shares of Applied Materials from $575.00 to $675.00 and gave the stock a “buy” rating in a research report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $605.00 price target (down from $680.00) on shares of Applied Materials in a research note on Friday, August 14th. Argus set a $600.00 price target on shares of Applied Materials and gave the company a “buy” rating in a research report on Tuesday, August 18th. Finally, Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $629.38.

Check Out Our Latest Research Report on AMAT

Applied Materials Trading Up 3.0%

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 firm’s 50 day moving average price is $487.97 and its 200 day moving average price is $471.76. The stock has a market capitalization of $397.99 billion, a P/E ratio of 43.21, a P/E/G ratio of 1.35 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating 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 company had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. During the same period in the previous year, the company posted $2.48 earnings per share. The firm’s revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts expect that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Dividend Announcement

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

Insider Buying and Selling at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction dated 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 directly 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 Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Judy Bruner sold 1,000 shares of the firm’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 sale, the director directly owned 25,544 shares in the company, valued at approximately $11,877,960. The trade was a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.30% of the company’s stock.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. QRG Capital Management Inc. grew its position in shares of Applied Materials by 10.5% during the 2nd quarter. QRG Capital Management Inc. now owns 215,839 shares of the manufacturing equipment provider’s stock valued at $156,051,000 after acquiring an additional 20,447 shares during the period. Envestnet Asset Management Inc. increased its stake in shares of Applied Materials by 7.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 1,068,335 shares of the manufacturing equipment provider’s stock worth $715,458,000 after purchasing an additional 70,642 shares in the last quarter. Andra AP fonden raised its holdings in Applied Materials by 34.4% in the 2nd quarter. Andra AP fonden now owns 126,229 shares of the manufacturing equipment provider’s stock worth $91,264,000 after purchasing an additional 32,340 shares during the period. State Street Corp lifted its position in Applied Materials by 85.4% during the second quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock valued at $50,267,184,000 after purchasing an additional 32,018,892 shares in the last quarter. Finally, Twin Peaks Capital Ltd purchased a new position in Applied Materials during the second quarter valued at $12,291,000. 80.56% of the stock is owned by hedge funds and other institutional investors.

Applied Materials Company Profile

(Get Free Report)

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.