Applied Materials, Inc. (NASDAQ:AMAT) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts remain broadly bullish: Applied Materials has a “Moderate Buy” consensus from 33 analysts, including 27 buy ratings and one strong-buy rating, with an average 12-month price target of approximately $658.
• AI-related semiconductor demand is supporting growth. The company beat quarterly EPS and revenue estimates, with revenue up 24.8% year over year, while advanced packaging, DRAM and high-bandwidth memory investment are driving optimism.
• Valuation and cyclical risks remain important. AMAT trades at a price-to-earnings ratio of 39.2 after substantial long-term gains, while potential memory-capacity imbalances could pressure future semiconductor capital spending; insiders have also sold significant shares recently.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the thirty-three analysts that are presently covering the company, MarketBeat.com reports. Five investment analysts have rated the stock with a hold rating, twenty-seven have given a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $658.4483.

A number of brokerages have issued reports on AMAT. Zacks Research raised Applied Materials from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 1st. Bank of America lowered their price target on Applied Materials from $720.00 to $650.00 and set a "buy" rating for the company in a research report on Friday, August 14th. HC Wainwright set a $850.00 price objective on Applied Materials in a research note on Monday, June 29th. Raymond James Financial set a $650.00 target price on Applied Materials in a research note on Wednesday, June 10th. Finally, Wolfe Research raised their target price on Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a report on Friday, May 15th.

Trending Headlines about Applied Materials

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

• Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum?
• Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth?
• Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst
• Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run?
• Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles

Insider Buying and Selling at Applied Materials

In related news, CFO Brice Hill sold 7,500 shares of Applied Materials stock in a transaction that occurred on 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 completion of the transaction, the chief financial officer owned 128,613 shares in the company, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president directly owned 146,916 shares in the company, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 231,692 shares of company stock valued at $146,114,059. Corporate insiders own 0.30% of the company's stock.

Institutional Trading of Applied Materials

Hedge funds have recently modified their holdings of the stock. JFS Wealth Advisors LLC lifted its holdings in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider's stock valued at $296,000 after buying an additional 17 shares during the period. Innovative Asset Advisors Group LLC grew its holdings in Applied Materials by 2.1% during the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider's stock worth $695,000 after acquiring an additional 20 shares during the period. Stonebridge Financial Group LLC grew its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after acquiring an additional 21 shares during the period. N.E.W. Advisory Services LLC raised its position in Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider's stock valued at $273,000 after acquiring an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. raised its position in Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider's stock valued at $132,000 after acquiring an additional 21 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Applied Materials Stock Performance

Shares of AMAT stock opened at $454.71 on Monday. Applied Materials has a 1-year low of $158.82 and a 1-year high of $739.67. The firm has a market cap of $360.86 billion, a PE ratio of 39.20, a price-to-earnings-growth ratio of 1.27 and a beta of 1.60. The company has a 50-day moving average of $533.24 and a two-hundred day moving average of $461.33. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

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 (EPS) for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. The business 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%. The business's revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the firm earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, analysts predict that Applied Materials will post 12.76 EPS for the current year.

Applied Materials Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials's dividend payout ratio is currently 18.28%.

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.

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