Applied Materials (NASDAQ:AMAT) Raised to Buy at Summit Insights

Applied Materials (NASDAQ:AMAT) was upgraded by investment analysts at Summit Insights from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday, Marketbeat Ratings reports.

A number of other equities research analysts have also recently weighed in on AMAT. Evercore reissued an “outperform” rating and issued a $290.00 price target on shares of Applied Materials in a research report on Friday, November 14th. KGI Securities raised Applied Materials to an “outperform” rating and set a $425.00 target price for the company in a report on Friday. Deutsche Bank Aktiengesellschaft raised Applied Materials from a “hold” rating to a “buy” rating and upped their target price for the company from $275.00 to $390.00 in a research report on Friday, January 23rd. KeyCorp lifted their price target on Applied Materials from $380.00 to $450.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, BNP Paribas Exane upgraded Applied Materials to a “hold” rating in a research note on Monday, November 17th. Twenty-eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $361.03.

Applied Materials Trading Up 8.1%

AMAT opened at $354.91 on Friday. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. Applied Materials has a one year low of $123.74 and a one year high of $376.32. The company has a market cap of $281.70 billion, a P/E ratio of 36.33, a PEG ratio of 3.15 and a beta of 1.70. The business’s 50-day simple moving average is $295.20 and its 200-day simple moving average is $236.72.

Applied Materials (NASDAQ:AMAT) last announced its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.19 by $0.19. The firm had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a return on equity of 38.52% and a net margin of 27.78%.The firm’s quarterly revenue was down 2.1% compared to the same quarter last year. During the same period in the prior year, the company posted $2.38 earnings per share. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. As a group, equities research analysts expect that Applied Materials will post 9.38 EPS for the current fiscal year.

Insiders Place Their Bets

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 completion of the transaction, the chief accounting officer owned 4,413 shares in the company, valued at approximately $1,127,653.89. This represents a 12.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Teri A. Little sold 4,000 shares of Applied Materials stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the sale, the senior vice president directly owned 84,351 shares in the company, valued at approximately $20,095,782.24. The trade was a 4.53% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,609 shares of company stock valued at $2,044,898. 0.30% of the stock is owned by insiders.

Institutional Trading of Applied Materials

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in Applied Materials by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 76,779,340 shares of the manufacturing equipment provider’s stock valued at $19,731,523,000 after acquiring an additional 330,197 shares during the period. State Street Corp lifted its stake in shares of Applied Materials by 1.0% in the second quarter. State Street Corp now owns 38,920,984 shares of the manufacturing equipment provider’s stock valued at $7,125,265,000 after purchasing an additional 391,540 shares during the period. Capital Research Global Investors boosted its holdings in Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock worth $8,405,458,000 after buying an additional 17,829,377 shares in the last quarter. Geode Capital Management LLC grew its position in Applied Materials by 2.0% during the second quarter. Geode Capital Management LLC now owns 21,026,363 shares of the manufacturing equipment provider’s stock worth $3,836,807,000 after buying an additional 407,282 shares during the period. Finally, Alliancebernstein L.P. increased its holdings in Applied Materials by 72.5% in the second quarter. Alliancebernstein L.P. now owns 13,564,120 shares of the manufacturing equipment provider’s stock valued at $2,483,183,000 after buying an additional 5,700,349 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

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.