Applied Materials (NASDAQ:AMAT) Shares Down 3.9% – Here’s Why
by Danessa Lincoln · The Markets DailyShares of Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report) fell 3.9% during mid-day trading on Thursday . The company traded as low as $334.01 and last traded at $337.27. 5,814,216 shares changed hands during trading, a decline of 27% from the average session volume of 8,015,348 shares. The stock had previously closed at $351.07.
Key Stories Impacting Applied Materials
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: Applied announced partnerships with Micron and SK Hynix to develop next‑generation AI memory chips, strengthening its addressable market in AI-related wafer‑fab equipment and positioning the company to capture spending tied to “monster” memory products. Applied Materials forges partnerships with Micron and SK Hynix for AI memory chips
- Positive Sentiment: Analyst notes (Zacks, JPMorgan coverage referenced in recent reports) call out AMAT’s strong business momentum, semiconductor rebound exposure, and resilient margins — themes that support medium‑term earnings power. The Zacks Analyst Blog JPMorgan, Johnson & Johnson, Applied Materials and Value Line
- Positive Sentiment: Recent quarterly results showed an EPS beat and strong margins, and management gave Q2 guidance that implies continued high‑margin revenue from advanced-node and AI-related tool demand — a fundamental tailwind separate from today’s market moves.
- Neutral Sentiment: Broader market analyst activity: reports that Goldman Sachs raised price targets on several large tech names may lift sentiment for the sector, but the direct impact on AMAT is unclear. Goldman Sachs Raises Price Targets on 3 Tech Giants by 10% and More
- Neutral Sentiment: Reported short‑interest figures in recent feeds look erroneous/blank (zeros/NaN) and provide no reliable signal on positioning or crowding right now.
- Negative Sentiment: Macro/market shock: a rise in oil prices and heightened Middle East tensions triggered selling across chip names — Nvidia, Broadcom, Micron and others — dragging AMAT lower today despite its company‑level positives. This is the main driver of the intraday decline. Nvidia, Broadcom, Micron Fall as Oil Risk Sends Shockwaves Through Tech
Wall Street Analyst Weigh In
Several brokerages have recently weighed in on AMAT. KeyCorp lifted their target price on shares of Applied Materials from $380.00 to $450.00 and gave the company an “overweight” rating in a research report on Friday, February 13th. Bank of America boosted their target price on shares of Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. BNP Paribas Exane upgraded shares of Applied Materials to a “hold” rating in a research report on Monday, November 17th. Susquehanna upgraded shares of Applied Materials from a “neutral” rating to a “positive” rating and upped their target price for the company from $180.00 to $400.00 in a research report on Sunday, January 11th. Finally, Zacks Research raised Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $363.46.
View Our Latest Research Report on AMAT
Applied Materials Trading Down 3.9%
The firm has a market capitalization of $267.66 billion, a price-to-earnings ratio of 34.52, a price-to-earnings-growth ratio of 1.56 and a beta of 1.65. The business’s fifty day moving average is $331.42 and its 200 day moving average is $260.02. 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 – Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping analysts’ consensus estimates of $2.21 by $0.17. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.88 billion. During the same quarter in the previous year, the firm posted $2.38 earnings per share. The firm’s revenue for the quarter was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current year.
Insiders Place Their Bets
In other Applied Materials news, CAO Adam Sanders sold 534 shares of the stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total value 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 trade represents a 10.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction dated 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 transaction, the chief financial officer owned 138,565 shares of the company’s stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 12,003 shares of company stock valued at $4,484,189. 0.30% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently added to or reduced their stakes in AMAT. Cornerstone Financial Management LLC bought a new stake in shares of Applied Materials during the 4th quarter worth approximately $25,000. Marquette Asset Management LLC boosted its stake in Applied Materials by 150.0% in the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock valued at $26,000 after buying an additional 75 shares in the last quarter. Redmont Wealth Advisors LLC bought a new position in shares of Applied Materials in the third quarter worth about $26,000. Wilkerson Advisory Group LLC acquired a new position in Applied Materials during the 4th quarter worth approximately $26,000. Finally, Highline Wealth Partners LLC lifted its stake in Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after purchasing an additional 38 shares during the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.
About Applied Materials
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.