Applied Materials (NASDAQ:AMAT) Stock Price Down 8.3% – Here’s What Happened
by Kim Johansen · The Markets DailyApplied Materials, Inc. (NASDAQ:AMAT – Get Free Report) dropped 8.3% on Thursday . The company traded as low as $337.53 and last traded at $338.55. Approximately 9,200,149 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 7,854,959 shares. The stock had previously closed at $369.34.
More Applied Materials News
Here are the key news stories impacting Applied Materials this week:
- Positive Sentiment: Record DRAM tools, new 2nm GAA tool announcements, a 15% dividend increase and steps to strengthen Asian logistics support renewed optimism about AMAT’s AI/DRAM exposure and cash returns to shareholders. Applied Materials Is Up After Record DRAM Tools, Dividend Hike And AI Supply-Chain Push
- Positive Sentiment: Analyst research (Erste Group) is modeling materially higher EPS for FY2026–FY2027 versus consensus (Erste’s FY2027 $13.96 estimate vs. current consensus ~ $9.38), signaling some brokers expect stronger multi-year profitability. Erste Group EPS Estimates for AMAT
- Positive Sentiment: Research notes point to growing end markets—high-bandwidth memory (HBM) and advanced packaging for AI chips—that could accelerate AMAT revenue beyond cyclicality in legacy fabs. Can HBM and Packaging Demand Accelerate AMAT’s Revenue Growth?
- Neutral Sentiment: Valuation and positioning pieces comparing ASML and Applied highlight both stocks as strong buys but emphasize different moats; ASML retains a premium for EUV dominance while AMAT is seen as cheaper exposure to broad equipment demand. ASML vs. Applied Materials: Which Chip Equipment Stock Offers Better Value in 2026?
- Neutral Sentiment: A MarketBeat piece flags that tech earnings growth hasn’t fully translated into ETF/stock price gains, suggesting broader market flow dynamics (not company fundamentals) may be capping AMAT’s rally. As Tech Earnings Grow, This ETF Still Hasn’t Caught Up (AMAT)
- Negative Sentiment: Analyst and media comparisons are elevating ACM Research (ACMR) as a better pure-play WFE/AI equipment buy, which can divert investor dollars away from AMAT in the near term. AMAT vs. ACMR: Which WFE Stock is the Better Buy Right Now?
- Negative Sentiment: Several articles spotlight ACMR’s momentum and niche wins in wafer-cleaning and AI-driven segments, amplifying competitive fear and rotation risk for AMAT. This AI Semi Equipment Maker Has Been Quietly Chewing Up the Competition
- Negative Sentiment: Broad-sector weakness hit semiconductor-equipment names in a recent selloff (Teradyne, Intel, KLA, Semtech cited alongside AMAT), pressuring the stock independent of AMAT-specific fundamentals. Teradyne, Applied Materials, Intel, KLA and Semtech Shares Plummet
Analyst Ratings Changes
A number of equities analysts have commented on AMAT shares. Mizuho raised their price objective on Applied Materials from $370.00 to $410.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. Susquehanna upgraded 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. Bank of America increased their target price on Applied Materials from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Citigroup raised their price target on Applied Materials from $400.00 to $420.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Finally, KGI Securities raised shares of Applied Materials to an “outperform” rating and set a $425.00 price objective for the company in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials has an average rating of “Moderate Buy” and a consensus price target of $363.46.
View Our Latest Stock Analysis on AMAT
Applied Materials Trading Down 0.4%
The business’s 50 day moving average price is $345.04 and its two-hundred day moving average price is $275.21. The company has a market capitalization of $267.58 billion, a price-to-earnings ratio of 34.51, a P/E/G ratio of 1.51 and a beta of 1.65. The company has a current ratio of 2.71, a quick ratio of 1.94 and a debt-to-equity ratio of 0.30.
Applied Materials (NASDAQ:AMAT – Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, beating the consensus estimate of $2.21 by $0.17. The business had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The firm’s revenue was down 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.38 EPS. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, equities analysts predict that Applied Materials, Inc. will post 9.38 earnings per share for the current fiscal year.
Applied Materials Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Thursday, June 11th. Shareholders of record on Thursday, May 21st will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, May 21st. This is a boost from Applied Materials’s previous quarterly dividend of $0.46. Applied Materials’s payout ratio is currently 18.83%.
Insider Activity
In other news, CFO Brice Hill sold 5,000 shares of the business’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares in the company, valued at approximately $50,051,063.65. The trade was a 3.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Judy Bruner sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $391.71, for a total transaction of $979,275.00. Following the completion of the transaction, the director owned 26,089 shares of the company’s stock, valued at approximately $10,219,322.19. This trade represents a 8.74% decrease in their position. The SEC filing for this sale provides additional information. 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.
Hedge Funds Weigh In On Applied Materials
A number of hedge funds have recently modified their holdings of AMAT. Cornerstone Financial Management LLC bought a new position in Applied Materials during the 4th quarter worth $25,000. Marquette Asset Management LLC increased its stake in shares of 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 during the period. Redmont Wealth Advisors LLC acquired a new stake in shares of Applied Materials in the third quarter valued at about $26,000. Wilkerson Advisory Group LLC bought a new position in shares of Applied Materials during the fourth quarter worth about $26,000. Finally, Highline Wealth Partners LLC raised its position in shares of Applied Materials by 48.7% during the fourth quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock worth $30,000 after acquiring an additional 38 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.
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.