Applied Materials (NASDAQ:AMAT) Trading Up 3.2% – Here’s Why

Shares of Applied Materials, Inc. (NASDAQ:AMAT) rose 3.2% on Friday . The stock traded as high as $420.50 and last traded at $417.0020. Approximately 6,121,280 shares were traded during trading, a decline of 16% from the average daily volume of 7,251,387 shares. The stock had previously closed at $403.91.

Trending Headlines about Applied Materials

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

• Positive Sentiment: Q1 results and product mix: Applied reported a non‑GAAP EPS beat ($2.38 vs. $2.21 est.) and stronger DRAM sales that now account for a larger share of Semiconductor Systems revenue — a direct lever for profitability as AI-driven memory demand ramps. Philippe Laffont’s Coatue Is Betting Billions on These 3 AI Stocks
• Positive Sentiment: Industry tailwinds — DRAM and AI: Multiple pieces highlight accelerating DRAM demand and constrained supply (memory prices upside) that benefit equipment suppliers like AMAT. This thesis underpins upside to revenue and margins. ‘DRAM Will Double or Triple From Here’ as AI Demand Outpaces Supply Chain Capacity
• Positive Sentiment: Strategic deal flow: Applied joined Tesla’s Terafab project — a notable design/manufacturing win that signals demand from large-scale foundry and advanced packaging initiatives. Such partnerships support a multi-year equipment revenue runway. Applied Materials Just Joined the Tesla Terafab Project
• Positive Sentiment: Buy-side and media support: High-profile endorsements and allocations (Jim Cramer calling AMAT “a great buy,” and Coatue’s interest) are driving retail and institutional attention. Jim Cramer on Applied Materials
• Positive Sentiment: Analyst/industry picks: Sector writeups (Zacks and others) list AMAT among semiconductor equipment beneficiaries from AI/ML, supporting further multiple expansion expectations. 3 Stocks to Buy From the Prospering Semiconductor Industry
• Neutral Sentiment: Upcoming catalyst: AMAT confirmed its Q2 FY2026 earnings call for May 14 — a near-term event that can amplify volatility depending on guidance and commentary on orders / backlog. Applied Materials to Report Fiscal Second Quarter 2026 Results on May 14, 2026
• Neutral Sentiment: Street expectations: Pre-earnings previews note Wall Street is looking for double‑digit EPS growth next quarter — positive if met but a potential source of downside if guidance is conservative. What to Expect From Applied Materials’ Q2 2026 Earnings Report

Wall Street Analyst Weigh In

AMAT has been the subject of several recent analyst reports. Susquehanna boosted their target price on Applied Materials from $435.00 to $500.00 and gave the stock a “positive” rating in a research note on Thursday, April 9th. Wells Fargo & Company boosted their target price on Applied Materials from $350.00 to $435.00 and gave the stock an “overweight” rating in a research note on Friday, February 13th. Bank of America boosted their target price on Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Needham & Company LLC boosted their target price on Applied Materials from $390.00 to $440.00 and gave the stock a “buy” rating in a research note on Friday, February 13th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $450.00 target price on shares of Applied Materials in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $368.29.

Applied Materials Stock Performance

The company has a market cap of $330.94 billion, a price-to-earnings ratio of 42.68, a price-to-earnings-growth ratio of 1.80 and a beta of 1.64. The firm has a 50-day simple moving average of $365.19 and a 200 day simple moving average of $299.72. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The firm’s revenue was down 2.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, sell-side analysts predict that Applied Materials, Inc. will post 11.1 earnings per share for the current fiscal year.

Applied Materials Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. This is a positive change from Applied Materials’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Thursday, May 21st. Applied Materials’s dividend payout ratio is presently 18.83%.

Insiders Place Their Bets

In other news, CAO Adam Sanders sold 534 shares of the company’s stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the sale, the chief accounting officer owned 4,625 shares in the company, valued at $1,753,615. This represents a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Brice Hill sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total value of $1,806,050.00. Following the sale, the chief financial officer owned 138,565 shares of the company’s stock, valued at $50,051,063.65. This trade represents a 3.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,003 shares of company stock valued at $4,484,189 over the last quarter. Company insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Applied Materials

Large investors have recently modified their holdings of the stock. Cornerstone Financial Management LLC purchased a new stake in shares of Applied Materials during the fourth quarter worth approximately $25,000. Marquette Asset Management LLC raised its stake in shares of Applied Materials by 150.0% during the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares during the last quarter. Redmont Wealth Advisors LLC purchased a new stake in shares of Applied Materials during the third quarter worth approximately $26,000. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials during the fourth quarter worth approximately $26,000. Finally, Highline Wealth Partners LLC raised its stake in shares of Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after purchasing an additional 38 shares during the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

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.