Applied Materials (NASDAQ:AMAT) Shares Down 5.3% – What’s Next?

20 May 2026, 19:07 by Teresa Graham · The Cerbat Gem

Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report) fell 5.3% during mid-day trading on Monday . The stock traded as low as $408.09 and last traded at $413.57. 8,222,778 shares traded hands during mid-day trading, an increase of 11% from the average session volume of 7,387,261 shares. The stock had previously closed at $436.62.

Key Stories Impacting Applied Materials

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

Positive Sentiment: Applied Materials announced that Broadcom will join its EPIC platform as an innovation partner, deepening collaboration on advanced packaging technologies for next-generation AI chips and systems. Applied Materials Announces Broadcom as EPIC Innovation Partner
Positive Sentiment: Applied Materials was added to a Zacks Rank #1 “Strong Buy” momentum list, reinforcing bullish sentiment around the name. Best Momentum Stocks to Buy for May 20th
Positive Sentiment: Analysts highlighted AMAT’s rising operating leverage, with AI demand, premium chip tools, and recurring services helping lift margins to a 25-year high. Applied Materials Gains From Rising Operating Leverage: What’s Ahead?
Positive Sentiment: Recent coverage argued that Applied Materials’ strong quarterly results and AI-driven demand could justify new all-time highs. Behind the Numbers: Why Applied Materials’ Historic Q2 Results Justify New All-Time Highs
Neutral Sentiment: Analysts compared AMAT with Lam Research and noted that Applied Materials’ AI software, diversified tools, and valuation may give it an edge as AI chip spending accelerates. Lam Research vs. Applied Materials: Which AI Chip Stock Has the Edge?
Neutral Sentiment: Applied Materials received a supplier excellence award from one of its vendors, which is positive for relationships but unlikely to move the stock materially on its own. Applied Energy Systems Receives Supplier Excellence Award from Applied Materials
Negative Sentiment: The semiconductor group saw some pressure after reports of supply-chain concerns tied to Samsung labor talks and a TSMC stake sale, which weighed on several chip-related stocks including AMAT. MACOM, Applied Materials, and Photronics Shares Are Falling, What You Need To Know
Negative Sentiment: Morgan Stanley reportedly downgraded Applied Materials, which may have tempered some enthusiasm despite the broader bullish AI narrative. Morgan Stanley downgrades Applied Materials (AMAT)

Wall Street Analyst Weigh In

Several research firms have issued reports on AMAT. B. Riley Financial upped their price target on Applied Materials from $530.00 to $550.00 and gave the company a “buy” rating in a report on Friday, May 15th. Morgan Stanley reaffirmed an “equal weight” rating and issued a $502.00 price target (up from $454.00) on shares of Applied Materials in a report on Friday, May 15th. Cantor Fitzgerald upped their price target on Applied Materials from $550.00 to $575.00 and gave the company an “overweight” rating in a report on Friday, May 15th. Royal Bank Of Canada upped their price target on Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Finally, Zacks Research cut Applied Materials from a “strong-buy” rating to a “hold” rating in a report on Monday, April 27th. Twenty-seven analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $465.14.

Read Our Latest Analysis on Applied Materials

Applied Materials Stock Performance

The firm’s 50 day simple moving average is $382.08 and its 200-day simple moving average is $322.58. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The company has a market capitalization of $338.75 billion, a price-to-earnings ratio of 40.08, a P/E/G ratio of 1.19 and a beta of 1.66.

Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion for the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the previous year, the business earned $2.39 EPS. The company’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Analysts expect that Applied Materials, Inc. will post 11.75 EPS for the current year.

Applied Materials Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 11th. Stockholders of record on Thursday, May 21st will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. This is a boost 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 (DPR) is currently 19.91%.

Insiders Place Their Bets

In other news, Director Judy Bruner sold 3,969 shares of the company’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $377.02, for a total value of $1,496,392.38. Following the transaction, the director directly owned 28,589 shares of the company’s stock, valued at approximately $10,778,624.78. This represents a 12.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Adam Sanders sold 534 shares of the company’s stock in a transaction 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 transaction, the chief accounting officer directly 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 SEC filing for this sale provides additional information. Insiders sold 7,003 shares of company stock worth $2,678,139 over the last ninety days. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently modified their holdings of the stock. Liontrust Investment Partners LLP increased its stake in shares of Applied Materials by 17.0% in the first quarter. Liontrust Investment Partners LLP now owns 97,521 shares of the manufacturing equipment provider’s stock worth $33,332,000 after acquiring an additional 14,182 shares during the last quarter. Pathway Wealth Management LLC boosted its holdings in Applied Materials by 8.0% in the first quarter. Pathway Wealth Management LLC now owns 6,100 shares of the manufacturing equipment provider’s stock worth $2,085,000 after purchasing an additional 450 shares in the last quarter. Western Wealth Management LLC boosted its holdings in Applied Materials by 16.1% in the first quarter. Western Wealth Management LLC now owns 4,829 shares of the manufacturing equipment provider’s stock worth $1,650,000 after purchasing an additional 669 shares in the last quarter. McIlrath & Eck LLC boosted its holdings in Applied Materials by 20.3% in the first quarter. McIlrath & Eck LLC now owns 421 shares of the manufacturing equipment provider’s stock worth $144,000 after purchasing an additional 71 shares in the last quarter. Finally, Silicon Valley Capital Partners boosted its holdings in Applied Materials by 353.8% in the first quarter. Silicon Valley Capital Partners now owns 649 shares of the manufacturing equipment provider’s stock worth $222,000 after purchasing an additional 506 shares in the last quarter. 80.56% of the stock is owned by institutional investors and hedge funds.

Applied Materials Company Profile

(Get Free Report)

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.