Applied Materials (NASDAQ:AMAT) Earns Buy Rating from B. Riley Securities

Applied Materials (NASDAQ:AMAT)‘s stock had its “buy” rating restated by equities research analysts at B. Riley Securities in a report released on Friday,Benzinga reports. They currently have a $450.00 price objective on the manufacturing equipment provider’s stock, up from their previous price objective of $400.00. B. Riley Securities’ price target points to a potential upside of 26.79% from the company’s previous close.

A number of other research analysts have also commented on AMAT. Jefferies Financial Group upped their price objective on Applied Materials from $260.00 to $360.00 and gave the company a “buy” rating in a report on Monday, December 15th. Citigroup boosted their target price on shares of Applied Materials from $250.00 to $400.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. KGI Securities upgraded shares of Applied Materials to an “outperform” rating and set a $425.00 price target on the stock in a research note on Friday. Evercore reiterated an “outperform” rating and issued a $290.00 price objective on shares of Applied Materials in a research note on Friday, November 14th. Finally, Sanford C. Bernstein reissued a “market perform” rating and issued a $325.00 price objective on shares of Applied Materials in a report on Monday, January 12th. Twenty-eight research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Applied Materials currently has a consensus rating of “Moderate Buy” and a consensus price target of $361.03.

Applied Materials Stock Performance

NASDAQ AMAT opened at $354.91 on Friday. The stock has a market cap of $281.70 billion, a PE ratio of 36.33, a P/E/G ratio of 3.15 and a beta of 1.70. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The firm has a 50-day moving average of $295.20 and a 200-day moving average of $236.72. Applied Materials has a 52-week low of $123.74 and a 52-week high of $376.32.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.19. Applied Materials had a net margin of 27.78% and a return on equity of 38.52%. The firm had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same period in the prior year, the firm earned $2.38 EPS. The business’s revenue was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, sell-side analysts anticipate that Applied Materials will post 9.38 EPS for the current year.

Insider Activity at Applied Materials

In other Applied Materials news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was 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 $20,095,782.24. This represents a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Adam Sanders sold 609 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $255.53, for a total value 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 SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 8,609 shares of company stock valued at $2,044,898. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. IFG Advisory LLC raised its position in Applied Materials by 1,008.1% in the second quarter. IFG Advisory LLC now owns 36,156 shares of the manufacturing equipment provider’s stock valued at $6,619,000 after purchasing an additional 32,893 shares during the last quarter. Grandfield & Dodd LLC increased its stake in shares of Applied Materials by 6.9% in the third quarter. Grandfield & Dodd LLC now owns 269,511 shares of the manufacturing equipment provider’s stock valued at $55,180,000 after buying an additional 17,397 shares during the period. Atlantic Union Bankshares Corp raised its holdings in Applied Materials by 23.0% in the 2nd quarter. Atlantic Union Bankshares Corp now owns 12,643 shares of the manufacturing equipment provider’s stock valued at $2,315,000 after buying an additional 2,363 shares during the last quarter. Sienna Gestion boosted its position in Applied Materials by 10.2% during the 2nd quarter. Sienna Gestion now owns 113,221 shares of the manufacturing equipment provider’s stock worth $18,924,000 after buying an additional 10,468 shares during the period. Finally, Westfield Capital Management Co. LP boosted its position in Applied Materials by 13,360.6% during the 2nd quarter. Westfield Capital Management Co. LP now owns 694,431 shares of the manufacturing equipment provider’s stock worth $127,129,000 after buying an additional 689,272 shares during the period. Institutional investors own 80.56% of the company’s stock.

Applied Materials News Summary

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.