Track market-moving stories before they get noisy

Key Takeaways Applied Materials' Semiconductor Systems revenues rose 27% year over year to $7.04 billion in Q3 fiscal 2026.AMAT's operating margin expanded to 38% from 33.2% as advanced chip technologies strengthened.AMAT forecasts fiscal Q4 Semiconductor Systems revenues of $7.9 billion, up 62% year over year.
Applied Materials (AMAT - Free Report) is gaining from rising demand for advanced chips used in artificial intelligence (AI) infrastructure, especially in its Semiconductor Systems business. In the third quarter of fiscal 2026, Semiconductor Systems generated revenues of $7.04 billion, up approximately 27% year over year.

Growing investment in leading-edge foundry-logic, dynamic random-access memory (DRAM) and advanced packaging is creating opportunities for the company’s wafer fabrication equipment, while rising manufacturing complexity supports demand for differentiated process technologies.

Applied Materials is expanding its technology portfolio to capitalize on these opportunities. Its Centris Spectral SiN ALD system supports advanced logic manufacturing, while enhanced Centura Prime epitaxy and Producer Avila 2 PECVD systems target DRAM performance and higher-layer-count high-bandwidth memory.

Beyond revenue growth, Semiconductor Systems is strengthening Applied Materials’ profitability. Its non-GAAP gross margin increased to 55.4% in the third quarter from 53.5% a year earlier. The operating margin expanded to 38% from 33.2%, reflecting the value of its technology portfolio and operating leverage.

AMAT anticipates fourth-quarter fiscal 2026 Semiconductor Systems revenues to be approximately $7.9 billion, suggesting 62% year-over-year growth. The outlook indicates that demand across leading-edge logic, DRAM and advanced packaging could sustain strong near-term momentum.

How Competitors Fare Against AMATApplied Materials faces competition from Lam Research (LRCX - Free Report) , KLA Corporation (KLAC - Free Report) and other semiconductor equipment suppliers, although their primary areas of specialization differ. Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory.

Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment. Although KLA does not compete directly with AMAT across its entire Semiconductor Systems portfolio, both companies can benefit from rising investment in advanced logic, high-bandwidth memory and advanced packaging.

AMAT’s Price Performance, Valuation and EstimatesApplied Materials shares have climbed 59.1% year to date, outperforming the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry’s appreciation of 15.9% and 18%, respectively.

AMAT YTD Performance Chart
Image Source: Zacks Investment Research

The rise in the stock price has made AMAT trade at a premium. Currently, AMAT has a price-to-sales (P/S) multiple of 7.11X, which is much above the industry’s P/S of 4.63X. AMAT’s value score of F also suggests its overvaluation.

AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

Applied Materials expects non-GAAP earnings of $4.02 per share (+/- 20 cents), indicating 85% year-over-year growth at the midpoint. The Zacks Consensus Estimate indicates year-over-year growth of 87%. The estimates have remained unchanged for the past 30 days.

Image Source: Zacks Investment Research

Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the latest close session, Applied Materials (AMAT - Free Report) was down 3.79% at $446.63. The stock's change was less than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

Shares of the maker of chipmaking equipment have appreciated by 10.23% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.06%.

The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on November 12, 2026. The company is forecasted to report an EPS of $4.06, showcasing a 87.1% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.3 billion, showing a 51.4% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.79 per share and a revenue of $34.25 billion, signifying shifts of +35.77% and +20.72%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Applied Materials holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 36.3. This signifies no noticeable deviation in comparison to the average Forward P/E of 36.3 for its industry.

It is also worth noting that AMAT currently has a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

 | Source: Applied Materials, Inc.

Company expects strong multi-year growth as global AI infrastructure buildout fuels demand for leading-edge foundry-logic, DRAM and advanced packaging – areas where Applied has built market leadershipExpects wafer fab equipment (WFE) spending to grow faster through 2030 than over the past decade; targets more than 2 percentage points of WFE share gain from calendar 2025 to 2030Targets higher profitability through 2030 with non-GAAP gross margin target of approximately 54 percent and non-GAAP operating margin target of approximately 40 percentCommitted to distribute 80 to 100 percent of free cash flow to shareholders over time SAN FRANCISCO, Oct. 13, 2026 (GLOBE NEWSWIRE) -- At its 2026 SEMICON West Investor Breakfast Presentation held today, Applied Materials, Inc. presented its longer-term growth expectations and outlined how its leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.

“The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment,” said Gary Dickerson, President and CEO of Applied Materials. “Applied Materials has built leadership in the fastest growing areas of the market that have the greatest impact on AI computing performance, power efficiency and cost, and our advanced services offerings enable chipmakers to increase yield and fab output. Our industry-leading capabilities position Applied for continued growth and outperformance in the years ahead.”

The race for AI computing leadership requires tremendous technology innovation and capacity expansion to support infrastructure scaling, which is fueling sustained WFE investments – bigger than any of the industry’s past growth drivers. The growth and diversity of AI applications from generative to agentic and physical AI require increasing amounts of silicon. Applied expects leading-edge foundry-logic, DRAM and advanced packaging to drive around 75 percent of WFE growth from 2025-2030. Applied has strong number-one process equipment positions in all three areas and is targeting to gain more than 2 percentage points of WFE market share from calendar 2025 to 2030.

To support the industry’s capacity expansion, Applied is utilizing its unique eBeam technology and advanced service solutions to help chipmakers accelerate the ramp of new process nodes and optimize yield, output and cost in high-volume manufacturing. With the industry’s highest resolution and fastest imaging capabilities, Applied’s eBeam equipment portfolio is expected to generate $2 billion in revenue in calendar year 2026. The company is expecting service revenue to grow more than 20 percent this calendar year and to exceed $12 billion in revenue by calendar year 2030, representing a mid-teens compound annual growth rate.

“For the past 10 years, Applied Materials has been making strategic investments to build the industry’s most enabling portfolio for AI computing,” said Brice Hill, Senior Vice President and CFO. “As AI drives wafer fab equipment growth, we are focused on further increasing profitability and operating leverage while investing in R&D programs that will fuel our outperformance into the future.”

Based on the company’s expectations for semiconductor industry growth, Applied is investing to more than double its R&D lab and manufacturing capacity from current levels by 2030. The company yesterday unveiled its new Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley, the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. To date, Applied has announced 15 EPIC Center partnerships with leading chipmakers, systems companies, equipment partners and universities. Applied has also recently expanded its manufacturing infrastructure in Austin, Texas, Singapore and Treviso, Italy.

Non-GAAP Financial Measures
Forward-looking non-GAAP gross margin and non-GAAP operating margin targets for 2030 assume non-GAAP adjustments as applicable for future periods, which we are unable to predict without unreasonable efforts due to their inherent uncertainty. Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less capital expenditures. Management uses non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied’s ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, our business outlook, expectations for our financial performance for calendar year 2026, our business and financial targets for 2030, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

The research program spans logic and packaging, but neither company disclosed new equipment orders or project economics.

Summary

Earlier involvement in process development could help Applied win tools that eventually reach commercial production.

Applied Materials AMAT, the semiconductor equipment and materials-engineering supplier, deepens its AI-chip research partnership with Intel while shares trade at $499.70, down about 1.4% at 12.24pm EST on October 12. The opportunity is to help shape tomorrow's manufacturing tools before chipmakers lock in their production plans. But the collaboration comes without disclosed new equipment orders. More research access could strengthen Applied's position. It does not put revenue on the books today.

Applied's announcement outlines joint work on transistors, chip wiring and Foveros-based three-dimensional packaging across its Silicon Valley EPIC Center and Intel's Oregon research campus. EPIC is scheduled to be operationally ready this year. The commercial logic is straightforward: understanding Intel's process requirements earlier could help Applied focus its development spending on tools customers eventually buy. The release gives no development budget or commitments to specific commercial nodes, leaving the timing and size of any sales payoff uncertain.

The valuation leaves little room for disappointment: the stock sits 96.21% above its $254.67 GF Value estimate. That estimate is a reference point, not a ceiling, but it highlights how much optimism the price already carries. Applied still needs to turn laboratory progress into tools that qualify for production and generate repeat orders. Those milestones would give investors firmer evidence of a revenue opportunity. Until then, the Intel partnership strengthens the long-term case without establishing a near-term earnings boost.

Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Global chip equipment spending is surging toward $144 billion, yet one of the industry's biggest names is growing at a fraction of its rivals' pace, putting its long-term position in the market under serious pressure.

Worldwide wafer fabrication equipment spending is projected to increase 23.1% to $143.9 billion in 2026, following a record $116.9 billion in 2025 Applied Materials’ global equipment market share declined from 20.0% in 2024 to 17.9% in 2025, while Lam Research, KLA and ASML gained share Applied Materials’ equipment revenue increased only 1.0% during the first half of 2026, compared with double-digit growth at its three major competitors, raising questions about its ability to recover market share Applied Materials Faces a Market Share Challenge The global semiconductor equipment industry is experiencing another major expansion, supported by artificial intelligence infrastructure investment, high-bandwidth memory, advanced logic manufacturing and increasingly complex semiconductor architectures. Worldwide wafer fabrication equipment (WFE) sales are projected to increase 23.1% to $143.9 billion in 2026, following a record $116.9 billion in 2025. The forecast reflects continued investment in the manufacturing technologies required to support the next generation of semiconductor devices.

However, the expansion is not benefiting every equipment manufacturer equally. Applied Materials (AMAT | AMAT Price Prediction), historically one of the industry’s largest and most diversified suppliers, has experienced a significant deterioration in its global market share. Its competitors, including Lam Research (LRCX), KLA (KLAC) and ASML (ASML), have demonstrated substantially stronger revenue growth during the latest first-half comparisons.

According to proprietary data from The Information Network, Applied Materials’ global WFE market share declined from 20.0% in 2024 to 17.9% in 2025, representing a loss of 2.1 percentage points. During the same period, Lam Research increased its share from 9.1% to 11.2%, KLA advanced from 7.9% to 8.2%, and ASML recovered from 22.4% to 23.0%.

The concern for investors is that Applied Materials’ equipment revenue increased only 1.0% during the first half of 2026 compared with the corresponding period in 2025. This contrasts sharply with the growth recorded by its major competitors and raises questions about whether Applied Materials can participate proportionately in the industry’s projected expansion.

The distinction is particularly important because the five largest semiconductor equipment manufacturers collectively account for a substantial majority of global WFE revenue. Their combined revenue is projected to increase from approximately $83.2 billion in 2025 to $113.6 billion in 2026, representing growth of approximately 36.5%. This is considerably faster than the projected 23.1% expansion of the worldwide market, suggesting that the industry’s largest suppliers could collectively increase their market share.

For Applied Materials, however, the question is whether its own revenue performance will improve sufficiently to participate in that shift.

A Continuing Shift in Semiconductor Equipment Market Share Applied Materials’ market share deterioration is not an isolated development. Its global WFE market share reached 22.2% in 2016, declined to 18.1% in 2019, and subsequently recovered to approximately 20.0% in 2022. That recovery has not been sustained, with its share falling to 17.9% in 2025.

The recent decline is particularly significant because the semiconductor equipment market has benefited from increased investment in advanced logic, memory and packaging technologies. Applied Materials participates in many of these markets through deposition, materials engineering, ion implantation and other process technologies. Nevertheless, its overall market share performance indicates that its revenue growth has not consistently matched the industry’s expansion.

According to Table 1, Applied Materials’ global WFE market share remained approximately stable between 2023 and 2024 before declining sharply in 2025. Lam Research experienced the opposite trajectory, increasing from 8.5% in 2023 to 11.2% in 2025. KLA also gained share, while ASML recovered in 2025 after declining in 2024. The 2026 projections illustrate the market share recovery that would be possible if the manufacturers achieve their respective full-year revenue forecasts.

Table 1. Global Semiconductor Equipment Market Share, 2023–2026 Company 2023 2024 2025 2026 Forecast Applied Materials (AMAT) 19.9% 20.0% 17.9% 20.4% Lam Research (LRCX) 8.5% 9.1% 11.2% 13.2% KLA (KLAC) 7.4% 7.9% 8.2% 8.3% ASML (ASML) 24.2% 22.4% 23.0% 25.2% Source: The Information Network. Historical market shares through 2025; 2026 projections calculated from supplied company revenue growth forecasts and worldwide WFE growth of 23.1%. The projected improvement in Applied Materials’ market share from 17.9% in 2025 to 20.4% in 2026 would require a substantial acceleration in its equipment revenue growth. Its full-year revenue projection assumes approximately 40% growth, a sharp contrast with the 1.0% increase recorded during the first half of 2026.

This difference between projected annual growth and actual first-half performance is central to evaluating the company’s outlook. The market share forecast demonstrates what Applied Materials could achieve under a strong recovery scenario, but its recent revenue performance provides limited evidence that such an acceleration is already underway.

The forecasts also indicate that the largest equipment manufacturers could capture a greater proportion of worldwide spending. However, these projections depend on the companies achieving their respective revenue targets and on maintaining consistent definitions between reported equipment revenue and the global WFE market.

First-Half 2026 Revenue Growth Reinforces the Competitive Divergence The competitive differences become more apparent when examining semiconductor equipment revenue growth during the first halves of 2025 and 2026.

Applied Materials’ equipment revenue increased 8.7% during the first half of 2025 compared with the corresponding period in 2024. However, its full-year 2025 equipment revenue increased only approximately 2%, coinciding with its 2.1-percentage-point market share decline.

During the first half of 2026, Applied Materials’ equipment revenue growth slowed further to just 1.0%. In contrast, Lam Research, KLA and ASML continued to report substantially stronger growth.

According to Table 2, Lam Research’s equipment revenue increased 23.3% during the first half of 2026, compared with 12.6% for KLA and 13.3% for ASML. The three manufacturers averaged 16.4% growth, substantially exceeding Applied Materials’ performance.

Table 2. Semiconductor Equipment Revenue Growth, First-Half Comparisons Company 1H 2025 vs. 1H 2024 1H 2026 vs. 1H 2025 Applied Materials (AMAT) +8.7% +1.0% Lam Research (LRCX) +41.8% +23.3% KLA (KLAC) +30.7% +12.6% ASML (ASML) +30.1% +13.3% Competitor Average +34.2% +16.4% Source: The Information Network. Competitor average represents the unweighted average of Lam Research, KLA and ASML Although revenue growth slowed across all four manufacturers, Applied Materials’ performance remained substantially weaker than that of its competitors. Its first-half 2026 growth was only a small fraction of the increases recorded by Lam Research, KLA and ASML.

This divergence raises questions about the assumptions underlying the company’s projected full-year recovery. If Applied Materials is to increase its equipment revenue approximately 40% in 2026, its second-half performance would need to accelerate dramatically from the first-half growth rate.

That acceleration is mathematically possible, particularly if equipment shipments and customer investments are heavily weighted toward the latter part of the year. However, investors should distinguish between a forecast that assumes strong second-half growth and evidence that such growth is materializing.

The company’s recent market share deterioration also illustrates the consequences of falling behind the overall industry. Applied Materials lost 2.1 percentage points of global WFE share in 2025 despite reporting positive equipment revenue growth. If its 2026 performance remains below the projected 23.1% expansion of worldwide WFE spending, further market share erosion would follow.

Why Lam Research, KLA and ASML Are Better Positioned The semiconductor equipment market is undergoing a structural transition as chipmakers adopt gate-all-around transistors, advanced DRAM architectures, higher-layer-count 3D NAND and increasingly sophisticated packaging technologies. These developments increase the importance of specific manufacturing processes, creating opportunities for suppliers with strong positions in those categories.

Lam Research benefits from growing etch and deposition requirements in advanced memory and logic manufacturing. Increasing NAND layer counts, more demanding DRAM structures and new transistor architectures require sophisticated processing technologies. Lam’s global WFE market share increased from 8.5% in 2023 to 11.2% in 2025, demonstrating its ability to capture a larger portion of equipment spending. Its first-half 2026 revenue growth of 23.3% also provides evidence of continued competitive momentum.

KLA benefits from the increasing importance of semiconductor inspection, metrology and process control. Advanced manufacturing requires tighter process tolerances and more sophisticated defect detection to maintain acceptable yields. KLA’s global market share increased from 5.9% in 2018 to 8.2% in 2025, reflecting the growing importance of these capabilities. Its competitive position becomes increasingly valuable as semiconductor structures become more difficult to manufacture.

ASML occupies a different position through its dominance in extreme ultraviolet lithography. The transition toward advanced logic nodes increases demand for sophisticated lithography systems, supporting ASML’s long-term growth. Its global WFE market share increased from 15.5% in 2015 to 23.0% in 2025, although annual results fluctuate with equipment delivery schedules and customer investment.

Applied Materials also participates in many of the technologies driving equipment demand. Its deposition, materials engineering and other process technologies remain essential to semiconductor manufacturing, while advanced packaging provides additional opportunities. Nevertheless, the company’s recent revenue performance suggests that these opportunities have not yet translated into growth comparable to that of its principal competitors.

For investors, the distinction between participation in growing markets and capturing a larger share of those markets remains critical. Companies with strong positions in the most rapidly expanding manufacturing processes may benefit disproportionately from the current equipment investment cycle.

China’s Domestic Equipment Expansion Adds Competitive Pressure Applied Materials also faces growing competition from Chinese semiconductor equipment manufacturers, which are expanding their presence in deposition, etch, cleaning and other manufacturing processes.

According to The Information Network, six leading Chinese equipment manufacturers recorded average first-half 2026 revenue growth of 35.6%, compared with 11.4% for seven major non-Chinese manufacturers. These figures represent unweighted company averages rather than aggregate market growth rates, but they illustrate the momentum of China’s domestic equipment industry.

Piotech recorded first-half revenue growth of 49.1%, followed by Hwatsing at 35.6%, ACM Research at 35.2%, AMEC at 34.9%, Skyverse at 34.0% and NAURA at 24.9%. Their expansion reflects continued investment in domestic semiconductor manufacturing capabilities and efforts to increase the use of locally manufactured equipment.

However, Chinese manufacturers still account for less than 10% of worldwide semiconductor equipment revenue. Their rapid growth therefore cannot independently explain major market share shifts among the industry’s largest international suppliers. Those changes also reflect differences in technology exposure, product demand and the distribution of capital spending across manufacturing processes.

For Applied Materials, the competitive challenge comes from both directions. Chinese suppliers are expanding their participation in domestic equipment spending, while established international manufacturers continue to benefit from strong positions in critical advanced manufacturing technologies.

Investor Takeaway The semiconductor equipment industry remains one of the principal beneficiaries of artificial intelligence infrastructure investment, advanced memory manufacturing and continued semiconductor technology development. With worldwide WFE revenue projected to increase 23.1% to $143.9 billion in 2026, the industry offers substantial opportunities for manufacturers capable of capturing incremental capital spending. However, The Information Network’s historical data demonstrate that Applied Materials has struggled to maintain its competitive position. Its global market share declined from 20.0% in 2024 to 17.9% in 2025, while Lam Research, KLA and ASML all gained share during that year.

The first-half 2026 revenue comparisons raise additional concerns. Applied Materials’ equipment revenue increased just 1.0%, compared with 23.3% for Lam Research, 12.6% for KLA and 13.3% for ASML. Although the full-year projections indicate that Applied Materials could recover market share to approximately 20.4% if its equipment revenue increases 40%, achieving that outcome would require a substantial acceleration during the remainder of 2026. The discrepancy between actual first-half performance and the projected full-year recovery is therefore a critical issue for investors evaluating the company’s competitive position.

For investors, the semiconductor equipment industry’s expansion remains attractive, but company selection is increasingly important. Lam Research’s recent market share gains and revenue growth make it particularly well positioned, while KLA’s process control capabilities and ASML’s lithography leadership provide important competitive advantages. Applied Materials remains an important industry supplier, but its investment case increasingly depends on demonstrating that its broad technology portfolio can generate revenue growth comparable to the overall market. Until that improvement becomes evident, the possibility of further market share erosion remains an important consideration in evaluating the stock.

Contact [email protected] for any questions or corrections.

Key Takeaways AMAT's AGS revenues hit a record $1.78 billion, up 22% year over year in fiscal Q3 2026.More than 37,000 chambers connect to Applied Materials' AIx software.AMAT expects AGS revenues to grow more than 20% in 2026 and mid-teens annually over the long term. Applied Materials’ (AMAT - Free Report) Applied Global Services (“AGS”) is growing alongside fab utilization and the need to improve output, yield and ramp speed. AMAT’s third-quarter fiscal 2026 revenues reached a record $1.78 billion, up 22% year over year, while non-GAAP operating margin rose to 30.1% from 27.3%. More than 37,000 chambers are connected to AIx software for monitoring, diagnostics and predictive analytics.

AMAT’s AGS business also benefits from the doubling of its manufacturing space over the past several years. AMAT plans to double quarterly system output from current levels by 2028. AMAT added more than 1,500 manufacturing and AGS support employees in the third quarter of fiscal 2026 and is planning further capacity for demand through 2030. This visibility can improve supply-chain readiness and execution across customer ramps.

Applied Materials' recurring AGS revenues, more than 37,000 AIx-connected chambers and value-based pricing provide operating support for that durability. AGS is becoming an important part of Applied Materials’ long-term earnings model. Its combination of subscription services, parts demand, advanced AI-enabled services and expanding margins gives AMAT a growing stream of revenue associated with supporting customers throughout their manufacturing operations.

In the third quarter of fiscal 2026, China represented 28% of its total revenues in the third quarter of fiscal 2026, up from 27% in the second quarter, which includes Semiconductor Systems plus AGS revenues. AMAT now expects China revenues to increase in 2026, led by 28-nanometer foundry-logic investment. AMAT now expects AGS revenues to grow more than 20% in 2026 and maintain a sustainable long-term annual growth rate in the mid-teens.

How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .

ASML is experiencing strong demand from DRAM and logic customers, who are ramping leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML Holding noted that multiple DRAM customers are adopting EUV lithography, which helps in shortening cycle time and lowering costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making the stock worth holding.

Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Additionally, Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.

AMAT’s Price Performance, Valuation and EstimatesApplied Materials shares have surged 102.6% year to date, outperforming the Zacks Electronics - Semiconductors industry’s appreciation of 36.7%.

AMAT YTD Performance Chart
Image Source: Zacks Investment Research

The rise in stock price has made AMAT stock trade at a premium. Currently, AMAT has a price-to-sales (P/S) multiple of 9.20X, which is much above the industry’s P/S of 5.14X. AMAT’s value score of F also suggests its overvaluation.

AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

Applied Materials expects non-GAAP earnings of $4.02 per share (+/- 20 cents), indicating 85% year-over-year growth at the midpoint. The Zacks Consensus Estimate suggests year-over-year growth of 87%. The estimates have been revised upward in the past 60 days.

Image Source: Zacks Investment Research

Applied Materials currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 | Source: Applied Materials, Inc.

Besi joins Applied's EPIC Center as an Innovation Partner, extending a collaboration that began in 2020 with the companies' joint Hybrid Bonding Center of Excellence in SingaporeExpanded collaboration targets next-generation 3D IC scaling, logic and memory integration, and photonics applications supporting AI infrastructure build-outPartnership expands beyond die-to-wafer hybrid bonding to new hybrid bonding platforms, scaling of thermo-compression bonding (TCB), and new die-on-wafer, die-on-die and die-on-panel architectures SANTA CLARA, Calif. and DUIVEN, The Netherlands, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (Nasdaq: AMAT) and BE Semiconductor Industries N.V. (Besi) (Euronext Amsterdam: BESI) today announced an expansion of their longstanding strategic partnership, with Besi joining Applied's EPIC Center as an Innovation Partner. The collaboration builds on the companies’ joint development program launched in 2020 and extends co-innovation beyond hybrid bonding into new interconnect architectures and applications supporting the semiconductor industry's AI-driven scaling roadmap.

As the AI infrastructure build-out drives demand for higher-density, higher-bandwidth chip-to-chip and chip-to-package interconnects, the expanded partnership is intended to give mutual customers earlier access to co-optimized process and assembly solutions spanning the full advanced packaging flow – from wafer-level hybrid bonding through panel-scale integration.

In 2020, Applied and Besi established a joint Center of Excellence at Applied's Advanced Packaging Development Center in Singapore, combining Applied's process expertise in etch, planarization, deposition, wafer cleaning, metrology, inspection and particle defect control with Besi's die placement, interconnect and assembly technology. That collaboration resulted in Kinex™, the industry’s first integrated die-to-wafer hybrid bonding system.

“Besi has been a trusted partner since we began co-developing next-generation hybrid bonding solutions,” said Gary Dickerson, President and CEO of Applied Materials. “With Besi joining EPIC as an Innovation Partner, we’re extending that collaboration across the interconnect technologies our customers need to scale AI systems. Bringing this work into Applied's EPIC Center gives both companies earlier visibility into where the roadmap is headed and lets us co-optimize the full packaging flow.”

“Our center of excellence with Applied in Singapore has been foundational to Besi's hybrid bonding roadmap,” said Richard Blickman, CEO and Chairman of the Board of Management of Besi. “Joining Applied's EPIC Center as an Innovation Partner is a natural next step, giving us a seat alongside the leading logic, memory and systems companies as we advance TCB scaling, die-on-panel integration and the interconnect technologies that will define the next generation of AI and photonics systems”

As an Innovation Partner, Besi engineers will work alongside Applied's teams at the EPIC Center to accelerate joint development across a broader set of interconnect and integration technologies. While advanced packaging was historically treated as a back-end assembly step, technologies such as hybrid bonding and panel-level integration now depend on the same materials engineering disciplines that define front-end wafer fabrication.

“Advanced packaging is no longer a back-end assembly step – it is a materials engineering challenge that demands the same precision and cleanliness as front-end wafer fabrication,” said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. “Developing these technologies together with Besi engineers in a front-end R&D environment like the EPIC Center will allow us to treat them as one connected flow rather than a series of isolated steps. That gives our mutual customers earlier access to co-optimized solutions and a faster path from development to high-volume manufacturing.”

The expanded scope of collaboration will focus on next-generation 3D IC scaling and logic and memory integration for AI compute and memory architectures, with expected R&D programs to include:

New platforms for die-to-wafer hybrid bonding, building on the companies' existing Singapore Center of ExcellenceScaling of thermo-compression bonding (TCB) and its surrounding process ecosystemNew die-on-wafer, die-on-die and die-on-panel integration platformsPhotonics-enabled interconnect applications supporting co-packaged optics and AI system scaling Applied’s new, $5 billion* EPIC (Equipment and Process Innovation and Commercialization) Center in Silicon Valley represents the largest-ever U.S. investment in advanced semiconductor equipment and process technology R&D. The center, which will be operationally ready this year, is designed from the ground up to dramatically reduce the time it takes to commercialize breakthrough technologies from early-stage research to full-scale manufacturing.

*Capital spending is expected to scale over time to approximately $5 billion as customer projects commence.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Applied Materials Forward-Looking Statements
This press release contains forward-looking statements, including those regarding Applied's investment and growth strategies, the development of new materials and technologies, industry outlook and technology requirements, the plans and expectations for the EPIC Center, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the demand for semiconductors and customers' technology requirements; the ability to develop new and innovative technologies; the ability to obtain and protect intellectual property rights in key technologies; the ability to achieve the objectives of the EPIC Center; and other risks and uncertainties described in Applied's filings with the Securities and Exchange Commission, including Applied's most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management's current estimates, projections and assumptions, and Applied assumes no obligation to update them.

About Besi
Besi is a leading manufacturer of assembly equipment supplying a broad portfolio of advanced packaging solutions to the semiconductor and electronics industries. We offer customers high levels of accuracy, reliability and throughput at a lower cost of ownership with a principal focus on wafer level and substrate assembly solutions. Customers are primarily leading semiconductor manufacturers, foundries, assembly subcontractors and electronics and industrial companies. Besi’s ordinary shares are listed on Euronext Amsterdam (symbol: BESI). Its Level 1 ADRs are listed on the OTC markets (symbol: BESIY) and its headquarters are located in Duiven, the Netherlands. For more information, please visit our website at
www.besi.com.

Besi Forward-Looking Statements
This press release contains statements about management's future expectations, plans and prospects of our business that constitute forward-looking statements, which are found in various places throughout the press release, including, but not limited to, statements relating to expectations of orders, net sales, product shipments, expenses, timing of purchases of assembly equipment by customers, gross margins, operating results and capital expenditures. The use of words such as “anticipate”, “estimate”, “expect”, “can”, “intend”, “believes”, “may”, “plan”, “predict”, “project”, “forecast”, “will”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The financial guidance set forth under the heading “Outlook” contains such forward-looking statements. While these forward-looking statements represent our judgments and expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from those contained in forward-looking statements, including any inability to maintain continued demand for our products; failure of anticipated orders to materialize or postponement or cancellation of orders, generally without charges; the volatility in the demand for semiconductors and our products and services; failure to develop new and enhanced products and introduce them at competitive price levels; failure to adequately manage costs and expenses in line with revenue; loss of significant customers, including through industry consolidation or the emergence of industry alliances; lengthening of the sales cycle; acts of terrorism and violence; disruption or failure of our information technology systems; consolidation activity and industry alliances in the semiconductor industry that may result in further increased customer concentration, inability to forecast demand and inventory levels for our products; the integrity of product pricing and protection of our intellectual property in foreign jurisdictions; risks, such as changes in trade regulations, conflict minerals regulations, currency fluctuations, political instability and war, associated with substantial foreign customers, suppliers and foreign manufacturing operations, particularly to the extent occurring in the Asia Pacific region where we have a substantial portion of our production facilities; potential instability in foreign capital markets; the risk of failure to successfully manage our diverse operations; any inability to attract and retain skilled personnel, including as a result of restrictions on immigration, travel or the availability of visas for skilled technology workers; and the other risks detailed in the Risk Management section of our Annual Report. We expressly disclaim any obligation to update or alter these forward-looking statements for revisions or changes whether as a result of new information, future events or otherwise after the date of this release.

In addition, the United States and other countries have recently levied tariffs and taxes on certain goods and could significantly increase or impose new tariffs on a broad array of goods. They have imposed, and may continue to impose, new trade restrictions and export regulations. Increased or new tariffs and additional taxes, including any retaliatory measures, trade restrictions and export regulations, could negatively impact end-user demand and customer investment in semiconductor assembly equipment, increase Besi’s supply chain complexity and manufacturing costs, decrease margins, reduce the competitiveness of our products or restrict our ability to sell products, provide services or purchase necessary equipment and supplies. Any or all of the foregoing factors could have a material and adverse effect on our business, results of operations or financial condition. In addition, investors should consider those additional risk factors set forth in Besi's annual report for the year ended December 31, 2025 and other key factors that could adversely affect our businesses and financial performance contained in our filings and reports, including our statutory consolidated statements. We expressly disclaim any obligation to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.

Contacts:

Applied Materials
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

Besi
Richard W. Blickman, President & CEO 
Andrea Kopp-Battaglia, Senior Vice President Finance  
Claudia Vissers, Executive Secretary/IR coordinator 
Edmond Franco, VP Corporate Development/US IR coordinator 
Tel. (31) 26 319 4500, [email protected]    

Applied Materials (AMAT.O) will invest $5 billion in India over the next decade to expand its presence in the country, the US ​semiconductor equipment maker said on Thursday at SEMICON India, the country's ‌flagship chip conference.

India put its semiconductor ambitions on display at the three-day event in New Delhi that spans chip materials, design, fabrication and packaging, and which has drawn more than ​600 companies and representatives from 52 countries.

This year, the industry has been ​beset by a global scramble for chip production capacity that ⁠has been sharpened by surging computing demand for AI and entangled with geopolitical ​tensions.

While Washington and Beijing have imposed tit-for-tat export restrictions on chip technology, India ​has cast itself as a "trusted partner", courting companies looking to diversify away from Taiwan and China.

"The world stands in utmost need of new and reliable manufacturing locations. I say with ​great responsibility that India is continuously preparing itself for this," Prime Minister ​Narendra Modi said.

India's semiconductor consumption is projected to reach as much as $110 billion by 2030, ‌up from $45 ⁠billion to $50 billion in 2025, according to government estimates.

Applied Materials, one of the world's largest semiconductor equipment makers, said its India investment will center on research, supply chain scale-up and workforce growth.

India, which has committed more than $21 billion ​across two key semiconductor ​incentive programs, remains ⁠a late entrant to the capital-intensive industry that countries like Taiwan have spent decades building.

Twelve projects have been approved ​under India's incentive program in the past five years, and ​three chip-packaging ⁠plants, including one run by US-based Micron Technology (MU.O), have begun commercial production.

India's push, however, has yet to produce a single chip from a large-scale fabrication plant. Commercial ⁠production ​from the mission's marquee project, a $10 billion Tata ​Electronics fab in the western state of Gujarat, has been delayed by nearly two years.

Anthropic's CEO called for slowing AI model progress over the weekend, and by Monday morning the shockwave had traveled straight to the fab equipment order books that Wall Street spent 2026 treating as untouchable.

Chip equipment stocks are the center of Monday morning’s selling. Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) stock is down 6% to $429.71, Lam Research (NASDAQ:LRCX) stock is falling 6% to $279.18, and ASML Holding (NASDAQ:ASML) stock is sliding 5% to $1,606.66. ASML is a Dutch lithography equipment maker, and the figures here are for its U.S.-listed shares.

The iShares Semiconductor ETF (NASDAQ:SOXX) is down 5% as the selling spreads across the chip complex. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is slipping 0.78%, so the broad market is barely moving while the tools layer takes the brunt. The SOXX semiconductor fund holds chip designers and foundries alongside equipment makers, so treat that fund as sector context rather than confirmation of an equipment-specific move.

Applied Materials stock is down 22% over the past month, so today’s decline extends a slide that began well before the weekend. That earlier weakness matters for reading what’s driving Applied Materials now, since it shows the market started discounting a demand risk long before the pacing headlines landed. That extended slide makes Applied Materials the featured name of this cluster, and its story frames the read across to Lam Research and ASML.

AI Pacing Call Reaches Fab Spending Anthropic CEO Dario Amodei wrote over the weekend that frontier artificial intelligence (AI) companies should slow the pace at which they improve model capabilities. He stated, “We must slow the pace at which we improve the capabilities of AI models. Progress will still seem fast, and we must make wise use of the time we gain.” OpenAI CEO Sam Altman publicly agreed and the head of xAI said the same, with all three labs privately held so the direct market read runs through customers and infrastructure suppliers rather than through the AI companies themselves.

Neil Wilson, UK strategist at Saxo, wrote in a Monday note that analysts would be “scrabbling around to assess likely impact on earnings and valuations” if AI-linked companies coordinated a material slowing in development and erected guardrails. The Bank for International Settlements added in its quarterly review Monday that “rising concerns about the future profitability of significant AI investments and the sustainability of large profit margins were fuelled by the increasing leverage of major US tech firms.” Together, those two data points frame the market’s fear on Monday: that AI capital spending, which has powered fab equipment orders through 2026, could pace slower than management guidance implies.

Equipment makers sit further from end demand than chipmakers do, since they sell into what fabs intend to spend on new capacity rather than into current chip sales. That means a pacing debate lands on the order book before it lands on shipments, and the order book at Applied Materials, Lam Research and ASML has been the direct beneficiary of hyperscaler AI capex plans through the year (we profiled seven non-chipmaker suppliers riding the same buildout in a free report here).

Tools Layer Falls Hardest The three equipment leaders are falling harder than the semiconductor fund on a day when the news concerns how fast AI models advance rather than how many chips ship today. That’s the whole point of the tools-layer story, and it’s why Applied Materials, Lam Research and ASML cluster near the top of the day’s decliner list rather than sitting in the middle of the pack. The equipment order book is a bet on capacity that fabs have not yet built, which is why intentions matter more here than in the chip layer.

Applied Materials reported record fiscal third-quarter revenue of $9.12 billion, up 25% from a year earlier and ahead of estimates, and Applied Materials guided its fourth quarter above expectations. The stock has still slid, as the market weighs the durability of that growth rate against a demand backdrop now in question.

Lam Research and ASML tell parallel stories. The company posted a June-quarter revenue increase of 30% from the same period in 2025 and guided the September quarter to $8.1 billion at the midpoint. ASML raised its full-year 2026 revenue outlook and outlined plans to expand both low NA EUV and DUV immersion capacity for 2027, and each of those trajectories assumes hyperscaler AI capex converts into fab tool orders on the timeline management set out.

The bull case for Applied Materials is that its most recent quarter set a revenue record and its guidance pointed higher, so nothing in the reported numbers has actually turned. The bear case for Applied Materials is that equipment orders reflect what fabs intend to spend rather than what they’re selling now, and intentions are the first thing to change when the demand outlook shifts.

What to Watch Applied Materials stock heads into the balance of Monday’s session with a slide that now runs beyond a single weekend headline. The nearest scheduled information event for Applied Materials is the company’s EPIC Center unveiling in Silicon Valley on October 12, followed by an investor breakfast presentation on October 13.

Whether Applied Materials shares stabilize before then may hinge on how quickly Wall Street settles the pacing debate for AI capex. Position sizing matters more than usual when a whole cluster moves together, and investors can check for whether their exposure to equipment names still fits the risk they want to carry after today. AMAT stock remains a bellwether to follow on any bounce or continuation from here.

Contact [email protected] for any questions or corrections.

 | Source: Applied Materials, Inc.

SANTA CLARA, Calif., Sept. 10, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a quarterly cash dividend of $0.53 per share payable on the company’s common stock. The dividend is payable on Dec. 10, 2026 to shareholders of record as of Nov. 19, 2026.

The cash dividend is a key component of Applied’s capital allocation strategy. In March 2026, Applied announced a 15-percent increase in the quarterly dividend per share, from $0.46 to $0.53, marking nine consecutive years of dividend increases. With that increase, Applied has grown its dividend per share at a compound annual growth rate of 18 percent over the past decade.

Over the past 10 fiscal years, the company has distributed nearly 90 percent of free cash flow to shareholders through dividends and share repurchases.

In the third quarter of fiscal 2026, Applied distributed $860 million to shareholders through dividends and share repurchases. The company had approximately $12.8 billion remaining in its share repurchase authorization at the end of the period.

Forward-Looking Statements
This press release may contain forward-looking statements, express or implied, regarding future rates of cash dividends and our share repurchase program. While we expect to continue to pay dividends in the future, the declaration of any future dividends or dividends at any particular rate is subject to the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that dividends are in the best interests of our stockholders. The timing and amount of share repurchases will depend on market conditions, our other funding requirements and other considerations. Additional factors that could cause actual results to differ materially from those expressed or implied by such statements are described in our SEC filings, including our recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

Use of Non-GAAP Financial Measure
For reconciliation of the GAAP to non-GAAP financial measure related to free cash flow, see non-GAAP reconciliation materials on the Investor Relations website at ir.appliedmaterials.com.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

California State Teachers Retirement System lifted its holdings in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 70,976.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 870,192,678 shares of the manufacturing equipment provider’s stock after acquiring an additional 868,968,380 shares during the period. Applied Materials makes up 1.7% of California State Teachers Retirement System’s portfolio, making the stock its 16th biggest position. California State Teachers Retirement System owned about 109.65% of Applied Materials worth $629,149,306,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in AMAT. JFS Wealth Advisors LLC boosted its position in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock worth $296,000 after purchasing an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after purchasing an additional 21 shares during the period. N.E.W. Advisory Services LLC lifted its stake in shares of Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its stake in shares of Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.

Analyst Ratings Changes A number of research firms have recently issued reports on AMAT. UBS Group increased their target price on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Stifel Nicolaus boosted their price target on Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. HSBC restated a “buy” rating and issued a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. Citigroup reiterated a “buy” rating on shares of Applied Materials in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $658.45.

Get Our Latest Report on Applied Materials Applied Materials News Roundup Here are the key news stories impacting Applied Materials this week:

Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum? Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth? Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run? Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles Applied Materials Stock Performance Shares of AMAT opened at $454.71 on Monday. The company has a market capitalization of $360.86 billion, a P/E ratio of 39.20, a P/E/G ratio of 1.27 and a beta of 1.60. Applied Materials, Inc. has a one year low of $158.82 and a one year high of $739.67. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a 50-day moving average price of $533.24 and a 200 day moving average price of $461.33.

Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the previous year, the business earned $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials, Inc. will post 12.76 EPS for the current fiscal year.

Applied Materials Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is 18.28%.

Insider Transactions at Applied Materials In other Applied Materials news, insider Prabu G. Raja sold 10,000 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider directly owned 346,642 shares of the company’s stock, valued at $219,608,106.26. This trade represents a 2.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 231,692 shares of company stock valued at $146,114,059 over the last ninety days. 0.30% of the stock is currently owned by corporate insiders.

(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.

Recommended Stories Five stocks we like better than Applied Materials AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).

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Benjamin Edwards Inc. lessened its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 3.5% in the second quarter, according to its most recent filing with the SEC. The firm owned 39,111 shares of the manufacturing equipment provider’s stock after selling 1,432 shares during the quarter. Benjamin Edwards Inc.’s holdings in Applied Materials were worth $28,282,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the business. JFS Wealth Advisors LLC increased its stake in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after buying an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its position in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after buying an additional 20 shares in the last quarter. Stonebridge Financial Group LLC raised its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after purchasing an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC lifted its position in Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares during the period. Finally, IMG Wealth Management Inc. lifted its position in Applied Materials by 13.0% in the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares during the period. Institutional investors own 80.56% of the company’s stock.

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

Positive Sentiment: Semiconductor and AI demand remains strong: Recent coverage highlights Applied Materials’ $9.12 billion third-quarter revenue, up 25% year over year, and non-GAAP EPS of $3.50, up 41%. Management cited record demand visibility from AI infrastructure, more than 10 new fab projects during the quarter and fourth-quarter revenue guidance of $10.25 billion. The company is also continuing share repurchases and investing $5 billion in its EPIC Center to accelerate semiconductor innovation. The AI Buildout Is Turning Applied Materials Into A Profit Machine Positive Sentiment: New board member adds semiconductor expertise: AMAT appointed Akash Palkhiwala, Qualcomm’s CFO and COO, to its board and Audit Committee. His finance, operations and industry experience could strengthen oversight as Applied Materials pursues growth tied to advanced logic, memory and AI chip production. Applied Materials Appoints Akash Palkhiwala to Board of Directors Neutral Sentiment: Options market signals elevated uncertainty: A new analysis says options pricing for roughly one year ahead implies a particularly wide potential trading range, extending materially below and above the current level. That suggests investors should expect significant volatility rather than providing a clear directional signal. How Far Applied Materials Stock Can Move In A Year Negative Sentiment: CFO share sale may weigh modestly on sentiment: CFO Brice Hill sold 7,500 AMAT shares for approximately $3.6 million, reducing his direct holdings by 5.51%. The sale does not alter the company’s operating outlook, but insider selling can create a limited short-term sentiment overhang. SEC Insider Transaction Filing Applied Materials Stock Performance Shares of AMAT opened at $461.67 on Monday. The company has a 50-day moving average of $550.80 and a two-hundred day moving average of $457.65. The stock has a market cap of $366.38 billion, a price-to-earnings ratio of 39.80, a PEG ratio of 0.99 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67. Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm’s revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.76 earnings per share for the current year.

Applied Materials Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s payout ratio is 18.28%.

Analyst Ratings Changes AMAT has been the topic of several research analyst reports. The Goldman Sachs Group reiterated a “buy” rating and set a $645.00 price target on shares of Applied Materials in a research report on Monday, August 3rd. Raymond James Financial set a $650.00 price objective on Applied Materials in a report on Wednesday, June 10th. Sanford C. Bernstein raised their target price on Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Finally, Mizuho dropped their price target on shares of Applied Materials from $650.00 to $590.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $657.76.

Get Our Latest Research Report on AMAT

Insider Buying and Selling In other news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the transaction, the insider owned 346,642 shares in the company, valued at $219,608,106.26. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 284,192 shares of company stock valued at $172,625,209. 0.30% of the stock is currently owned by company insiders.

Applied Materials Profile (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.

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Arete Wealth Advisors LLC purchased a new stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 14,831 shares of the manufacturing equipment provider’s stock, valued at approximately $10,723,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Harborfront Financial Group LLC purchased a new stake in Applied Materials during the 2nd quarter valued at about $27,000. BOK Financial Private Wealth Inc. purchased a new position in Applied Materials in the 2nd quarter worth approximately $41,000. Financial Freedom LLC purchased a new position in Applied Materials in the 1st quarter worth approximately $28,000. Elevation Wealth Partners LLC lifted its position in Applied Materials by 34.8% in the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock valued at $67,000 after purchasing an additional 24 shares during the last quarter. Finally, Cornerstone Financial Management LLC bought a new stake in Applied Materials in the fourth quarter valued at approximately $25,000. 80.56% of the stock is owned by institutional investors.

Insiders Place Their Bets In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the transaction, the insider owned 346,642 shares of the company’s stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 276,692 shares of company stock valued at $169,030,834. Insiders own 0.30% of the company’s stock.

Analyst Upgrades and Downgrades Several research analysts have recently issued reports on the stock. Raymond James Financial set a $650.00 target price on shares of Applied Materials in a report on Wednesday, June 10th. Royal Bank Of Canada upped their price target on shares of Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a report on Friday, August 14th. KeyCorp increased their price target on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. Wells Fargo & Company raised their price target on shares of Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a report on Friday, June 26th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $645.00 price objective on shares of Applied Materials in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $657.76. Get Our Latest Stock Report on AMAT

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

Positive Sentiment: Goldman Sachs reportedly named Applied Materials a “top pick,” citing the company’s exposure to the continued buildout of AI infrastructure and chip-manufacturing capacity. Applied Materials Stock Is Named a Top Pick at Goldman Sachs Positive Sentiment: Analysts see significant upside after the stock’s decline from its high, with AI-driven semiconductor investment and record quarterly revenue supporting bullish price targets. One report cited an average target near $641, implying roughly 32% potential appreciation from recent levels. Wall Street Sees Rally Despite Decline From Peak Positive Sentiment: Applied Materials is viewed as a key beneficiary of AI infrastructure spending because its equipment and engineering solutions are essential to advanced semiconductor manufacturing. Why Investors Should Buy the Dip in AMAT Neutral Sentiment: Mizuho lowered its Applied Materials price target from $650 to $590 but retained an “outperform” rating. The reduced target reflects more cautious expectations, while the rating still indicates confidence in the company’s longer-term prospects. Benzinga Neutral Sentiment: The reported August short-interest figures show zero shares and a mathematically invalid change, making the data unreliable and unlikely to provide a meaningful trading signal. Negative Sentiment: Semiconductor stocks broadly declined as investors reduced risk ahead of NVIDIA’s results, weighing on Applied Materials alongside other chipmakers. Semiconductor Stocks Slide Ahead of NVIDIA Earnings Applied Materials Stock Down 0.9% Shares of NASDAQ:AMAT opened at $480.04 on Wednesday. The firm has a market capitalization of $380.96 billion, a P/E ratio of 41.38, a P/E/G ratio of 1.04 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a 50 day moving average price of $558.87 and a 200-day moving average price of $454.37. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm’s revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts anticipate that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.

Applied Materials Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s payout ratio is presently 18.28%.

Applied Materials Profile (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.

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China just unveiled domestic immersion DUV lithography systems, and semiconductor equipment stocks sold off hard, but the companies actually in the crosshairs may not be the ones investors are panicking about.

China has directed semiconductor manufacturers to use at least 50% domestically produced equipment when adding new capacity, according to a Reuters report citing people familiar with the policy. Fab projects that fail to meet that threshold are generally denied regulatory approval, although flexibility remains where no suitable Chinese tool is available. The requirement favors domestic equipment suppliers such as Naura Technology and AMEC over foreign companies and provides the context needed to understand China’s newly announced immersion deep-ultraviolet lithography systems.

Reports that Shanghai Aishengna Electronic Technology Group has begun producing immersion DUV systems sent shares of ASML Holding (ASML | ASML Price Prediction) down sharply and contributed to weakness across semiconductor equipment stocks, including Applied Materials (AMAT). The initial reaction treated the development as evidence that China could begin replacing Western equipment across its semiconductor industry. That conclusion is directionally understandable, but the immediate effect on Applied Materials is being overstated.

Applied Materials does not manufacture lithography systems. A Chinese immersion DUV machine competes directly with ASML, not with Applied Materials’ deposition, etch, thermal-processing, metrology, inspection and advanced-packaging systems. The greater risk is indirect and longer term: if domestic lithography becomes commercially usable, it fills one of the largest remaining holes in China’s equipment supply chain and allows Chinese fabs to build production lines containing a higher percentage of domestic deposition, etch, cleaning and chemical mechanical planarization equipment.

For investors, the distinction matters. Five unproven Chinese DUV systems will not materially change Applied Materials’ earnings in 2026. But the combination of China’s 50% domestic-equipment requirement, rapidly growing local equipment companies, and expanding fabs at CXMT, SMIC and Hua Hong could reduce Applied Materials’ addressable market in China over several years.

Applied Materials Remains Heavily Exposed to China Applied Materials generated $2.095 billion from China during its fiscal first quarter of 2026, representing 29.9% of total company revenue. China remained the company’s largest individual geographic market even though revenue declined 6.6% from $2.243 billion one year earlier.

China exposure held close to that level in fiscal Q2: reported China revenue was $2.087 billion, or 26.4% of the quarter’s $7.910 billion total. Across the first half of fiscal 2026, China generated $4.182 billion of Applied Materials’ $14.922 billion in revenue — 28.0% of the total (Table 1).

These figures do not mean that all $2.087 billion of quarterly China revenue is threatened by CXMT or Chinese DUV. U.S. controls already restrict exports of specified semiconductor manufacturing equipment used to produce advanced chips in China. The thresholds include logic at 16/14nm or below, DRAM at 18nm calculated half-pitch or below, and advanced NAND.

Applied Materials’ remaining China revenue therefore includes portions of the market it can still legally serve: qualifying mature-node fabs, specialty devices, packaging, display-related manufacturing, services and unrestricted customers. Its current China business should not be confused with the advanced memory and logic opportunities from which the company has already been partially excluded — exclusions that carry a real, quantified cost. Applied Materials has guided to roughly a $600 million revenue headwind in fiscal 2026 from expanded U.S. export restrictions, including $110 million in the fiscal fourth quarter alone.

China’s domestic-equipment policy layers a second risk on top of that sanctions-driven one. Chinese fabs are being encouraged to buy local equipment even in markets where foreign tools remain legally available, putting Applied Materials’ permitted China business under competitive pressure while it is simultaneously locked out of the country’s most advanced capacity additions.

Chinese Equipment Suppliers Are Already Gaining Share China’s domestic equipment industry is no longer a collection of small development programs. Naura supplies deposition, etch, furnaces, rapid thermal processing and other systems. AMEC competes in etch and deposition. Piotech participates in deposition, while Hwatsing Technology supplies CMP equipment. ACM Research (ACMR), through its large Chinese operating presence, supplies wet cleaning, plating, furnace and packaging systems, although its U.S. headquarters and dual corporate structure distinguish it from purely domestic companies such as Naura and AMEC.

Combined sales from six major Chinese semiconductor equipment suppliers increased from $748 million in 2020 to $7.608 billion in 2025 — more than a tenfold increase in five years. Their adjusted worldwide WFE share rose from 1.2% to 6.5% over the same period. These companies collectively grew sales 29.9% in 2025, led by Piotech, AMEC and Hwatsing (Table 2).

Chinese equipment companies do not need to replace Applied Materials worldwide to affect its financial performance — they only need to gain share inside China, where Applied Materials still produces more than a quarter of its revenue. The 50% domestic-equipment requirement gives them a protected qualification environment, while U.S. export controls limit the foreign competition they face at advanced Chinese fabs.

Domestic DUV can accelerate this process even if the scanners initially perform far below ASML’s systems. Lithography has remained one of the largest weaknesses in China’s equipment ecosystem. Progress there makes it easier to assemble a complete Chinese production line rather than pairing Chinese deposition and etch systems with imported ASML scanners.

Five Chinese DUV Systems Do Not Constitute Mass Production Shanghai Aishengna is reportedly targeting approximately five immersion DUV systems in 2026 and 20 in 2027. Initial deliveries are expected to go to SMIC, Hua Hong and CXMT. By comparison, ASML shipped 131 immersion DUV systems in 2025.

The Chinese systems reportedly use mostly domestic components, though selected critical parts still come from Japan. They also trail ASML’s scanners in performance, reliability and build quality and could require months of testing before entering production. China’s domestic EUV initiative remains at the prototype stage and is likely years from supporting commercial chip output.

Aishengna’s 2027 production target would equal only about 15.3% of ASML’s 2025 immersion DUV shipments (Table 3). The near-term numbers are small, but the planned customers are strategically important: China’s leading foundry, a major mature-node producer and its principal DRAM manufacturer.

“Mass production” therefore overstates the immediate commercial threat. Five systems are closer to a qualification fleet than a volume-production program. The investment significance is not that Aishengna is about to displace ASML across China, but that the scanners will be installed at the fabs most important to China’s semiconductor self-sufficiency strategy — where they can be tested alongside Chinese deposition, etch, cleaning, CMP and process-control equipment. If the resulting production line hits acceptable throughput and yield, later capacity expansions can carry a progressively higher share of domestic tools.

CXMT Demonstrates the Longer-Term Risk CXMT is the clearest example of how this equipment ecosystem could develop. The company is now the world’s fourth-largest DRAM producer, behind SK hynix, Samsung Electronics and Micron Technology (MU). Its G4 16Gb DDR5 process has an approximately 16nm feature size, placing it within the U.S. advanced-DRAM threshold covering production at 18nm calculated half-pitch or below.

Consequently, Applied Materials cannot freely compete for much of the equipment required for CXMT’s newest DRAM production. CXMT is not simply choosing Naura over Applied Materials in an unrestricted competitive bid. U.S. rules have already limited Applied Materials’ ability to supply and service controlled tools at advanced Chinese memory facilities.

The impact is no longer only theoretical. Industry trackers estimate that domestic equipment now accounts for roughly 40% to 50% of the tools installed on CXMT’s production lines, a share expected to rise as new expansion phases begin. In core processes such as etch, domestic penetration reportedly exceeds 60% at some facilities, although I have not independently been able to verify these figures. Naura, AMEC and other Chinese suppliers, not Applied Materials, are already capturing much of the equipment spending tied to China’s fastest-growing DRAM producer.

This means CXMT’s expansion represents foregone growth as much as direct displacement of Applied Materials’ currently reported China revenue, and the foregone share is already substantial. CXMT’s capacity reached approximately 290,000 wafer starts per month in Q1 2026 and could approach 350,000 by year-end. New fabs under construction in Shanghai and Hefei could eventually lift CXMT’s capacity above 600,000 wafers per month and allow it to overtake Micron in physical wafer capacity by 2030.

CXMT will still trail Micron technologically. Its older process produces fewer bits per wafer, while Micron receives additional revenue from leading-edge DRAM and HBM. However, CXMT’s lower manufacturing efficiency may require greater wafer capacity and equipment intensity to produce a given number of bits. That would normally create an opportunity for deposition and etch suppliers. China’s domestic-equipment policy, and CXMT’s own sourcing pattern, instead directs much of that opportunity toward local companies.

China’s DUV program reinforces this outcome. CXMT has already relied on imported ASML DUV systems and multi-patterning to produce advanced DRAM without EUV. A domestic DUV platform would not immediately give CXMT the same technology as Micron, Samsung or SK hynix, but it could allow the company to add future lithography capacity without depending entirely on additional ASML shipments or foreign servicing.

Applied Materials’ AI Opportunity Remains Intact The China risk should not obscure Applied Materials’ growth opportunities elsewhere. AI is increasing demand for advanced logic, gate-all-around transistors, HBM, high-performance interconnects, 3D architectures and advanced packaging. These transitions increase materials-engineering intensity and support demand for Applied Materials’ deposition, etch and packaging systems.

The company’s June 2026 product introductions for 2nm and advanced 3D architectures — including its Viva nanosheet engineering platform and new ALD and etch systems — target precisely these AI-related manufacturing transitions. Spending by TSMC, Samsung, Intel, Micron and SK hynix can offset some of the equipment opportunities Applied Materials cannot pursue in China.

China’s five initial DUV systems therefore do not invalidate the Applied Materials investment story; they are too few, too immature and too far behind ASML to produce an immediate earnings shock. The larger issue is whether domestic DUV lets China qualify a complete equipment ecosystem that eventually reaches beyond restricted advanced fabs and begins displacing Applied Materials in the mature-node and specialty markets where it can still sell.

Investor Takeaway The market reaction to China’s domestic DUV announcement exaggerated the near-term threat to Applied Materials. Aishengna does not compete directly with Applied Materials, and five planned systems will not materially reduce its 2026 revenue. Applied Materials’ most important AI-related growth opportunities remain tied to advanced manufacturing outside China, where its deposition, etch, gate-all-around and packaging technologies retain strong competitive positions.

The longer-term China risk is nevertheless real, and CXMT shows it is no longer only longer-term. Applied Materials generated 29.9% of fiscal Q1 2026 revenue from China, while six major Chinese equipment companies increased combined sales more than tenfold between 2020 and 2025. China’s 50% domestic-equipment requirement gives those suppliers a structural advantage, and CXMT—one of the first planned recipients of China’s domestic DUV systems—already sources an estimated 40%–50% of its production-line equipment domestically.

For investors, the correct interpretation is not that Chinese DUV immediately threatens Applied Materials’ earnings. It is that China has turned its fastest-growing advanced fab into a protected qualification market for domestic processing equipment, and CXMT’s rising localization rate is the clearest evidence of how far that substitution has already progressed. Applied Materials can continue growing through AI-driven investment elsewhere, but a progressively self-sufficient Chinese equipment industry will limit how much of China’s semiconductor expansion the company can capture.

Contact [email protected] for any questions or corrections.

Applied Materials Inc. (NASDAQ:AMAT) could see semiconductor systems revenue grow about 40% this year as AI-driven chip investment continues to strengthen, according to JPMorgan.

Analyst Harlan Sur maintained an Overweight rating on Applied Materials with a $660 price forecast. The comments followed a Thursday meeting with Mike Sullivan, the company’s corporate vice president and head of investor relations.

Applied Materials Sees Stronger Chip Equipment DemandSullivan said roughly 40% year-over-year growth in Applied Materials’ Semiconductor Systems business appears achievable this year. Demand has strengthened over the past 13 weeks, although limited cleanroom space at customers could constrain further upside.

The company also plans to expand manufacturing capacity to support as much as twice its recent systems output by 2028. However, Sullivan stressed that the plan should not be viewed as a forecast for semiconductor equipment spending.

Instead, the company wants enough capacity to meet demand if the industry expands faster than expected. The company has more than eight quarters of visibility through its backlog and customer forecasts.

AI Drives Most Of Industry GrowthApplied Materials has become more confident about the 2027 wafer fabrication equipment outlook. Customer forecasts now extend into the first half of 2028, while some customers are discussing plans through 2030.

AI-related markets, including leading-edge logic, DRAM and advanced packaging, are driving about 80% of wafer fabrication equipment growth this year. Applied Materials expects a similar mix in 2027.

DRAM also represents a growing opportunity. The company estimates its revenue opportunity for every 100,000 greenfield wafer starts per month could rise from about $6 billion at 6F² technology to $6.5 billion at 4F² and $7.5 billion with 3D DRAM.

Meanwhile, Sullivan said value-based pricing is becoming increasingly important as the company seeks to capture more of the economic benefits its equipment delivers through better chip performance, yields and throughput.

AMAT Price Action: Applied Materials shares were down 0.67% at $492.85 at the time of publication on Thursday, according to Benzinga Pro data.

Photo via Shutterstock 

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ABN AMRO Bank N.V. boosted its stake in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 13.1% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 99,652 shares of the manufacturing equipment provider’s stock after purchasing an additional 11,532 shares during the period. ABN AMRO Bank N.V.’s holdings in Applied Materials were worth $71,856,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Financial Freedom LLC acquired a new position in shares of Applied Materials in the first quarter worth $28,000. Elevation Wealth Partners LLC increased its holdings in Applied Materials by 34.8% during the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after purchasing an additional 24 shares during the period. Cornerstone Financial Management LLC purchased a new stake in Applied Materials during the 4th quarter worth about $25,000. Whipplewood Advisors LLC raised its position in Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new stake in Applied Materials in the 4th quarter valued at about $26,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades A number of brokerages have recently commented on AMAT. B. Riley Financial reissued a “buy” rating and set a $700.00 price objective (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. Royal Bank Of Canada raised their price objective on shares of Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a report on Friday, August 14th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, JPMorgan Chase & Co. increased their price target on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $659.83.

Read Our Latest Analysis on Applied Materials Insider Buying and Selling In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by insiders.

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

Positive Sentiment: Applied Materials was included in Zacks’ Rank #1 (Strong Buy) momentum list, reflecting continued favorable technical and fundamental sentiment after its substantial 2026 rally. Best Momentum Stock to Buy for August 19th Positive Sentiment: An analyst upgrade recently supported AMAT, while longer-term bullish arguments point to AI-driven semiconductor demand, a broad equipment portfolio and strong international revenue opportunities. Applied Materials Trading Higher Following Analyst Upgrade Neutral Sentiment: Applied Materials had surged about 98% in 2026 and 31% over three months, making it a major beneficiary of the AI-capital-spending trade but also leaving the stock vulnerable to profit-taking and shifts in expectations. Applied Materials Rockets 98% in 2026 Neutral Sentiment: Analysts remain constructive on AI-related growth and semiconductor demand, but AMAT’s premium valuation requires continued execution and strong forecasts to justify further gains. Should You Buy, Sell or Hold AMAT Stock Negative Sentiment: The immediate pressure is concentrated across chip-equipment names, including Applied Materials, Lam Research and Teradyne. Because the broader market is rising while the group sells off, investors appear concerned about the durability or timing of AI-related capital expenditures rather than interest rates alone. What Is Prompting the Selloff in Chip Equipment Stocks? Negative Sentiment: Investors are also questioning whether AMAT is “priced for perfection,” with its elevated earnings multiple increasing the risk of a sharper reaction to any slowdown in AI spending or semiconductor demand. Applied Materials Is Priced For Perfection Applied Materials Stock Down 3.5% Shares of NASDAQ:AMAT opened at $496.17 on Thursday. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock has a market cap of $393.94 billion, a P/E ratio of 42.77, a P/E/G ratio of 1.11 and a beta of 1.61. The firm has a fifty day moving average price of $565.29 and a 200 day moving average price of $449.54.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business’s revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts predict that Applied Materials, Inc. will post 12.65 EPS for the current year.

Applied Materials Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is 18.28%.

Applied Materials Company Profile (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.

See Also Five stocks we like better than Applied Materials Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).

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Caitong International Asset Management Co. Ltd increased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 61.8% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,938 shares of the manufacturing equipment provider’s stock after buying an additional 3,413 shares during the quarter. Applied Materials comprises about 0.9% of Caitong International Asset Management Co. Ltd’s holdings, making the stock its 21st largest position. Caitong International Asset Management Co. Ltd’s holdings in Applied Materials were worth $6,462,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently added to or reduced their stakes in AMAT. Brighton Jones LLC grew its stake in shares of Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC purchased a new stake in shares of Applied Materials during the second quarter worth approximately $410,000. Schnieders Capital Management LLC. raised its stake in shares of Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.

Insider Transactions at Applied Materials In other Applied Materials news, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the transaction, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the sale, the insider owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades A number of equities analysts recently weighed in on AMAT shares. Susquehanna lifted their price objective on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a research report on Wednesday, June 10th. Needham & Company LLC restated a “buy” rating and issued a $740.00 target price on shares of Applied Materials in a research note on Friday. Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a report on Thursday, June 11th. Finally, Stifel Nicolaus boosted their price target on shares of Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average price target of $640.17.

Get Our Latest Report on Applied Materials

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

Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks. Applied Materials Stock Performance Shares of AMAT stock opened at $507.18 on Monday. The business’s fifty day moving average price is $564.15 and its 200 day moving average price is $445.77. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The firm has a market capitalization of $402.68 billion, a PE ratio of 43.72, a P/E/G ratio of 1.25 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the prior year, the business posted $2.48 earnings per share. Applied Materials’s revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 12.48 EPS for the current fiscal year.

Applied Materials Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.

Applied Materials Profile (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.

Featured Stories Five stocks we like better than Applied Materials The Metals Company’s Big Bet Now Comes Down to a License OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings Meta and Tesla Are Rebounding From Oversold Levels—Now What? AMG’s Alternatives Boom Powers Record Growth Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).

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A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

Aug 14 (Reuters) - Applied Materials (AMAT.O), opens new tab shares fell about 5% in premarket trading on Friday, as the chip equipment ​maker's upbeat outlook failed to soothe investors ‌worried about the threat from intensifying competition.

The muted reaction illustrates the high bar chip stocks have to clear and ​suggests that investors have little tolerance for ​any hint that a company may be falling ⁠behind peers.

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

After a sharp rally that has more ​than doubled Applied's shares this year, investors want ​clearer signals that the company's growth is outpacing rivals in the wafer-fab-equipment market.

Summit Insights Group said Applied's topline performance has ​lagged peers such as Dutch chip-equipment maker ASML (ASML.AS), opens new tab ​and Lam Research.

The company forecast fourth-quarter revenue of about $10.25 billion a ‌day ⁠earlier, above the $9.54 billion consensus estimate and forecast that margin would be steady at 50.4% in the October quarter.

Morgan Stanley said the flat outlook was ​not a ​major concern ⁠amid capacity expansion, but leaves the company exposed to investor demands.

Rivals Lam Research (LRCX.O), opens new tab and KLA (KLAC.O), opens new tab ​last month reported upbeat results, and ASML lifted ​its ⁠2026 outlook.

Applied Materials shares are at 32.14 times the expected earnings over the next 12 months, according ⁠to ​data from LSEG. That compares ​with 34.59, 36.85 and 33.39 for Lam, KLA and ASML, respectively.

Reporting ​by Akriti Shah in Bengaluru; Editing by Mrigank Dhaniwala

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Live Coverage Updates appear automatically as they are published.

Live Updates 6 minutes ago

Live

That wraps up our initial coverage of AMAT’s Q3 results. Thank you for stopping by!

15 minutes ago

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Applied Materials generated a record $3.04 billion in operating cash flow during the quarter and $2.33 billion in non-GAAP free cash flow, up 14% year over year.

This helped the business return $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.

Meanwhile, China declined to 28% of total revenue from 35% a year ago, with sales slipping slightly from $2.55 billion to $2.51 billion.

Growth elsewhere more than offset that weakness: U.S. revenue doubled to $1.37 billion, while European revenue more than tripled to $483 million.

That geographic shift leaves Applied Materials less dependent on China while positioning the company to benefit from the global expansion of semiconductor manufacturing capacity.

17 minutes ago

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Applied Materials’ core Semiconductor Systems segment generated $7.04 billion in Q3 revenue, up 27% from $5.56 billion a year earlier.

Non-GAAP operating income climbed 45% to $2.67 billion, while operating margin expanded from 33.2% to 38.0%.

DRAM increased to 26% of segment revenue from 22% last year, and AMAT also introduced six new systems targeting DRAM and advanced packaging, including technology designed to support 12-layer, 16-layer, and future higher-layer-count HBM designs.

The combination of accelerating revenue growth and expanding profitability reinforces management’s view that Applied Materials can grow faster than the broader semiconductor equipment market.

26 minutes ago

Live

Applied Materials’ momentum is expected to accelerate into the fourth quarter. Management guided for $10.25 billion in revenue, plus or minus $500 million, and $4.02 in non-GAAP EPS, plus or minus $0.20.

At the midpoint, revenue would rise another 12% sequentially after Applied Materials just delivered the highest sequential revenue growth in its history.

CEO Gary Dickerson also raised the company’s calendar 2026 Semiconductor Systems outlook and said stronger customer visibility points to “another strong growth year” in 2027.

The outlook suggests that spending on AI chips, DRAM, leading-edge foundry logic, and advanced packaging remains firmly in expansion mode. Still, Applied Materials shares are down 2.5% following the Q3 earnings release.

30 minutes ago

Live

Applied Materials just reported earnings, with shares initially down 4% despite beating expectations on both the top and bottom lines. Here are the key numbers:

Revenue: $9.115 billion vs. $9.00 billion expected Adjusted EPS: $3.50 vs. $3.39 expected Quick Read:

Revenue increased 25% year over year and 15% sequentially, while EPS jumped 41% year over year and 22% from the previous quarter.

The initial selloff suggests investors were looking for more after Applied Materials’ enormous run over the past year.

Attention will now turn to management’s outlook, margins, China exposure, and commentary surrounding AI, high-bandwidth memory, and Gate-All-Around demand.

44 minutes ago

Live

Across the last five quarters, Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) has beaten every time, yet the immediate reaction has averaged -2.18% day-of.

The largest single-day drop was -14.07% following Q3 FY2025, while Q1 FY2026 delivered the biggest pop at +8.08%. Forward guidance drives direction more than beat size.

Initial reactions rarely hold. Every 30-day window post-report has been positive, ranging from -1.53% to +35.8%. Even the ugly August 2025 sell-off recovered +10.12% within a month.

With shares near $540.99 and a forwardP/E of 36, tonight’s guidance and any China commentary will matter far more than the headline beat itself.

50 minutes ago

Live

With Applied Materials (NASDAQ:AMAT) set to report Q3 earnings at 4:00 PM ET, here is the preview framework for tonight’s call.

Top 5 Analyst Questions Is the >30% calendar 2026 WFE growth guide sustainable, or front-loaded? China trajectory after falling to 27% of Q2 revenue from 35% a year ago? HBM/DRAM share versus ASML, Lam, and KLA? Free cash flow recovery after Q2 FCF dropped 80.2%? ASMPT NEXX close timing and Gate-All-Around 2nm traction? Key Topics and Buzzwords Listen for: EPIC Center, book-to-bill, capacity digestion, leading-edge logic. Gross margin push beyond the 50.0% Q2 mark. Red Flags Any softer Q4 guide echoing the Q3 FY2025 China-driven guide-down. Fresh export-control commentary following the $253M BIS settlement. Working-capital drag persisting into Q4. 55 minutes ago

Live

Options positioning suggests traders are bracing for volatility. The August 14 expiration shows put volume exceeding calls by 35%, while the August 21 chain flips call-heavy (2.3x put volume), signaling expected turbulence followed by directional conviction.

Consensus mirrors guidance: EPS $3.36, revenue $8.95B, Semiconductor Systems ~$6.9B, AGS ~$1.75B, gross margin ~50.1%.

Investors will watch the DRAM mix (29% last quarter) as a proxy for HBM demand, plus advanced packaging commentary tied to the 50%+ packaging growth target.

AMAT’s historical pattern warrants caution: across five straight beats, the average earnings-day change is -2.18%, and Q3 FY25 fell 14.07% on soft guidance.

Upside trigger: revenue near the $9.45B high end or Semi Systems topping $7B. Downside trigger: any cut to the 30% equipment growth outlook, fresh China commentary, or a light Q4 guide. 57 minutes ago

Live

Guidance Is Everything: What Q4 Signal Investors Need Tonight’s headline numbers matter less than the Q4 FY26 outlook. Wall Street is anchored to management’s $8.95 billion revenue and $3.36 EPS guide, plus the more than 30% calendar 2026 equipment growth call.

CEO Gary Dickerson guides conservatively with +/- $500 million ranges, yet has raised the annual outlook twice this year.

Bullish scenario: Q4 revenue above $9.5 billion, EPS above $3.60, growth lifted toward 35%, DRAM/HBM mix expanding, and gross margin beyond 50.0%. Bearish scenario: Guide below $8.5 billion, a maintained (not raised) full-year outlook, weaker China commentary, or any AI capex digestion language echoing the Q3 FY25 China miss. After a 193.05% one-year run, investors are likely looking for guidance to be raised tonight.

59 minutes ago

Live

Beyond the China overhang, four surprise factors could swing tonight’s reaction.

First, the $253M settlement with the Commerce Department’s Bureau of Industry and Security in Q1 leaves export-license commentary as a live catalyst. Second, options positioning is defensive: tomorrow’s expiration shows put volume of 12,267 versus 9,060 calls, signaling hedged books despite the 94.1% Polymarket beat probability. Third, HBM/DRAM mix now sits at 29% of Semi Systems, up from 27%, making any AI-memory commentary market-moving. Fourth, history warns of asymmetric downside: Q3 FY2025 fell -14.07% day-of despite a 5.09% beat. 1 hour ago

Live

Applied Materials enters tonight’s Q3 earnings with expectations running high. Management’s guidance calls for $8.95 billion in revenue and $3.36 in non-GAAP EPS, while its 2026 equipment growth outlook has been raised to more than 30%.

AI infrastructure, high-bandwidth memory, and Gate-All-Around transistor demand continue to power the AI-equipment supercycle.

However, free cash flow fell 80.21% last quarter due to working-capital pressure, while China, which is responsible for 27% of revenue, remains a major wildcard.

Polymarket traders assign a 94.1% probability that Applied Materials beats expectations. Yet with the stock soaring 193.05% over the past year, a simple beat is likely not what the market is pricing in. Analysts carry a consensus price target of $633.34, with 32 Buy ratings.

Applied Materials (NASDAQ:AMAT) reports Q3 FY2026 after the market closes today at 4:00 PM ET. With shares up 113.83% year to date, investors are waiting to see the company’s guidance and commentary on China.

Last Quarter’s Backdrop Last quarter, Applied Materials delivered $7.91 billion in revenue, up 11.41% YoY, and non-GAAP EPS of $2.86, a 6.56% beat. The company’s Semiconductor Systems segment margin expanded to 35.1% from 32.8%, and DRAM mix rose to 29% on HBM demand.

However, operating cash flow dropped 46.21% to $845 million. Shares have gained 24.58% since the May 14 filing, outpacing both SPY and QQQ.

Consensus Estimates Metric Q3 FY26 Guide YoY vs Q3 FY25 FY25 Actual FY26 Trajectory Revenue $8.95B vs $7.302B $28.368B Equip. >30% growth EPS (Non-GAAP) $3.36 vs $2.48 $9.42 Accelerating The midpoint implies a step change from the $7.302B that AMAT posted a year ago. Semi Systems is doing the heavy lifting, and the raised calendar-2026 target signals confidence in orders through year-end.

What I’m Watching Tonight: Margins, China, and AI Order Cadence Tonight, I’ll be watching four things. First, Semi Systems’ operating margin. 35.1% set a new bar last quarter, and any give-back would sting given the stock’s current multiple. Second, DRAM and HBM mix. Management flagged HBM as the primary driver behind the DRAM step-up, and SK hynix, Micron, and Samsung are all named EPIC Center partners.

Third, the Gate-All-Around ramp. New tools, including Precision Selective Nitride PECVD and Trillium ALD, are tied to the 2nm transition at TSMC and others. Investors will also focus on order commentary tied to those platforms. Fourth, China. $2.087 billion came from China last quarter, and the $253 million BIS settlement earlier this year underscores export policy.

Free cash flow is another wildcard analysts will be watching. FCF of just $210 million against record revenue drew scrutiny, and Reddit debate on July 29 swung from a bullish score of 72 to bearish 32 within hours. Full-chain put/call sits at 1.02, hedged positioning.

Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q2 FY26 +6.56% -5.28% -1.02% +35.8% Q1 FY26 +7.84% +1.19% +5.25% -1.53% Q4 FY25 +2.36% +1.19% -0.88% +9.85% Q3 FY25 +5.09% +1.09% +0.45% +10.12% On average, shares moved roughly -0.21% one week after earnings over the past year, with recovery within 30 days.

Contact [email protected] for any questions or corrections.

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Posted by Defense World Staff on Aug 6th, 2026

Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report)’s stock price was down 2.3% during trading on Wednesday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The company traded as low as $530.57 and last traded at $534.24. Approximately 5,051,443 shares were traded during trading, a decline of 39% from the average daily volume of 8,260,841 shares. The stock had previously closed at $546.62.

A number of other research firms have also weighed in on AMAT. The Goldman Sachs Group reissued a “buy” rating and issued a $645.00 price objective on shares of Applied Materials in a research report on Monday. Royal Bank Of Canada lifted their target price on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. HSBC reiterated a “buy” rating and issued a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. HC Wainwright set a $850.00 price objective on Applied Materials in a report on Monday, June 29th. Finally, Stifel Nicolaus upped their target price on Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $603.23.

View Our Latest Stock Analysis on AMAT

Insider Activity In other news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 in the last ninety days. 0.30% of the stock is currently owned by company insiders.

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

Positive Sentiment: Applied Materials continues to benefit from strong semiconductor-equipment fundamentals. The company recently exceeded quarterly earnings and revenue expectations, with revenue rising 11.4% year over year, and issued third-quarter fiscal 2026 EPS guidance of $3.16–$3.56. A broader semiconductor rally, driven by AI optimism and strong memory demand, is also supportive for equipment suppliers. Semiconductor Rally Powers S&P 500 to Fresh Record High Positive Sentiment: Wall Street’s average recommendation remains equivalent to a Buy, indicating that analysts generally expect continued upside from Applied Materials’ exposure to semiconductor manufacturing and AI-related capital spending. Wall Street Analysts See Applied Materials as a Buy Neutral Sentiment: The semiconductor sector has rallied sharply, helping lift major indexes to records. That momentum supports AMAT’s industry backdrop, but it may also increase valuation and profit-taking risk after a strong run. Semiconductor ETFs Surge as the AI Trade Ramps Back Up Negative Sentiment: Applied Materials was reportedly among the large-cap stocks shorted by Michael Burry, who has warned of a potential 1987-style market selloff. The report is weighing on sentiment toward highly valued chip-related stocks, even though Burry’s position is an opinion rather than a change in AMAT’s business outlook. Applied Materials Faces Fresh Scrutiny After Michael Burry Short Bet Negative Sentiment: Erste Group Bank AG downgraded Applied Materials from “buy” to “hold,” adding near-term pressure to the stock and reinforcing concerns that its elevated valuation leaves less room for disappointment. Finviz Analyst Rating Information Hedge Funds Weigh In On Applied Materials Several large investors have recently modified their holdings of the stock. JFS Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC boosted its stake in shares of Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after buying an additional 20 shares during the last quarter. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after acquiring an additional 21 shares in the last quarter. Basecamp Wealth Advisors LLC raised its position in Applied Materials by 0.7% during the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after acquiring an additional 22 shares in the last quarter. Finally, Financial Management Professionals Inc. lifted its holdings in Applied Materials by 2.2% in the second quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock valued at $752,000 after acquiring an additional 22 shares during the period. Institutional investors own 80.56% of the company’s stock.

Applied Materials Price Performance The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock has a fifty day simple moving average of $556.14 and a 200-day simple moving average of $435.59. The company has a market capitalization of $424.17 billion, a price-to-earnings ratio of 50.16, a P/E/G ratio of 1.39 and a beta of 1.61.

Applied Materials (NASDAQ:AMAT – Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business’s revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.

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.

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Applied Materials (AMAT +1.18%) rose about 15% on Thursday, July 30, without releasing any news of its own. Shares closed that day at $501.77 and edged higher again on Friday, leaving them more than 30% short of their 52-week high of $739.67. And the company's next chance to justify the move arrives on Thursday, Aug. 13, when it reports fiscal third-quarter results.

The catalyst was a peer, not Applied itself. Lam Research, which sells chip-manufacturing equipment into many of the same factories, reported record June-quarter revenue, operating margin, and earnings per share on Wednesday, and it guided for about $8.1 billion in September-quarter revenue.

Investors marked up equipment stocks across the board on Thursday, and Applied Materials, already up more than 200% from its 52-week low of $154.47, moved with them.

Image source: Getty Images.

The Aug. 13 test Applied's own most recent update supports the optimism. In May, the company reported record fiscal second-quarter results: Revenue rose 11% year over year to $7.91 billion, and non-GAAP (adjusted) earnings per share grew 20% to $2.86. Management guided for fiscal third-quarter revenue of about $8.95 billion, plus or minus $500 million, which would be another record. Also worth noting, Applied raised its quarterly dividend 15% this year, to $0.53 per share, its ninth straight annual increase.

CEO Gary Dickerson said at the time that the company expects its semiconductor equipment business to grow more than 30% in calendar 2026. In the earnings release, he said the artificial intelligence (AI) build-out, combined with the company's positions in leading-edge logic, DRAM, and advanced packaging, provides "an exceptionally strong foundation for sustained, multi-year revenue and profit growth."

Today's Change

(

1.18

%) $

5.90

Current Price

$

507.67

So the Aug. 13 report has two jobs. It needs to deliver on the roughly $9 billion revenue guide, and it needs to show demand strong enough to back that 30% growth call for the calendar year.

Until then, Thursday's gain is a bet on results Applied hasn't reported yet. The AI spending wave that lifted Lam Research favors the whole equipment group, and Applied's May numbers suggest it is riding the same demand.

But a move this large gets confirmed on earnings day, and investors will get their answer in less than two weeks.

Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials and Lam Research. The Motley Fool has a disclosure policy.

Alesco Advisors LLC An ESL Co acquired a new position in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 2,884 shares of the manufacturing equipment provider’s stock, valued at approximately $986,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Insight Advisors LLC PA acquired a new position in Applied Materials during the 1st quarter worth approximately $253,000. Saturna Capital Corp grew its stake in Applied Materials by 34.2% in the first quarter. Saturna Capital Corp now owns 1,590 shares of the manufacturing equipment provider’s stock valued at $543,000 after acquiring an additional 405 shares during the period. Danica Pension Livsforsikringsaktieselskab increased its holdings in shares of Applied Materials by 0.7% during the first quarter. Danica Pension Livsforsikringsaktieselskab now owns 78,906 shares of the manufacturing equipment provider’s stock valued at $26,969,000 after acquiring an additional 576 shares in the last quarter. ABN Amro Investment Solutions raised its position in shares of Applied Materials by 33.3% during the first quarter. ABN Amro Investment Solutions now owns 438,392 shares of the manufacturing equipment provider’s stock worth $149,838,000 after purchasing an additional 109,506 shares during the period. Finally, PNC Financial Services Group Inc. grew its position in Applied Materials by 13.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 567,604 shares of the manufacturing equipment provider’s stock valued at $194,001,000 after purchasing an additional 69,366 shares during the period. Institutional investors own 80.56% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research analysts have weighed in on AMAT shares. Wolfe Research raised their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Mizuho increased their price target on Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a research report on Wednesday, July 8th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. Susquehanna upped their target price on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $525.00 price target on shares of Applied Materials in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $593.84.

Read Our Latest Research Report on AMAT

Insider Activity In other news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the transaction, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. Company insiders own 0.30% of the company’s stock.

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

Positive Sentiment: Peer Taiwan Semiconductor Manufacturing announced plans to raise chipmaking prices by up to 10% in 2027, while wafer supplier IQE lifted guidance, reinforcing expectations for strong AI and data-center chip demand and more equipment spending across the semiconductor supply chain. Why Applied Materials (AMAT) Stock Is Up Today Positive Sentiment: Applied Materials’ installed base services business appears to be a growing recurring-revenue engine, with Applied Global Services revenue rising to $1.665 billion from $1.42 billion a year earlier as fab utilization improves. Is AMAT’s Installed Base Business Built for Long-Term Growth? Positive Sentiment: Industry commentary continues to point to AI-driven semiconductor growth as a tailwind for AMAT, with analysts highlighting the company as a beneficiary of sustained demand for advanced chips and manufacturing equipment. 3 Stocks to Buy From the Prospering Semiconductor Industry Neutral Sentiment: Applied Materials also joined CuspAI’s AI Materials Foundry as a founding member, a strategic move that could support long-term materials discovery efforts, though it is not an immediate earnings catalyst. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery Negative Sentiment: Some market commentary flagged seasonal weakness for AMAT heading into late July, which could temper momentum if investors focus on near-term trading patterns. Three Stocks Just Flashed Seasonal Signals Applied Materials Stock Performance NASDAQ:AMAT opened at $564.55 on Wednesday. The business’s fifty day moving average is $537.43 and its 200 day moving average is $418.14. The firm has a market cap of $448.23 billion, a price-to-earnings ratio of 53.01, a PEG ratio of 1.34 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the business earned $2.39 earnings per share. Applied Materials’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts predict that Applied Materials, Inc. will post 12.14 EPS for the current year.

Applied Materials Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.

Applied Materials Company Profile (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.

Further Reading Five stocks we like better than Applied Materials Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).

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Key Takeaways Applied Materials' AGS revenues rose to $1.665B as higher fab utilization boosted recurring services.AMAT expects AGS to sustain mid-teens annual growth as revenue per installed tool continues to expand.AMAT has connected more than 35,000 chambers to AIx software for AI-powered monitoring and analytics. Applied Materials’ (AMAT - Free Report) large installed base has turned into a recurring revenue engine. Applied Global Services (AGS), under which the servicing of installed bases is reported, has generated $1.665 billion in revenues, up from $1.42 billion a year earlier, reflecting higher fab utilization.

AGS’ gross margin improved to 34.7% and its operating margin rose to 29.2%. The strategic value of AGS is that it adds resilience to Applied Materials’ profit model. Unlike the more cyclical equipment business, services are tied to a growing installed base and to customer needs throughout the tool lifecycle.

Management said AGS is another important growth driver because Applied Materials increases the revenue it generates “per tool” on top of a growing installed base. AMAT expects the AGS segment to deliver a sustainable annual growth rate in the mid-teens, potentially higher this year. That makes AGS an important bridge between one-time equipment sales and long-duration customer relationships.

What makes AGS especially relevant in the AI era is the company’s AI-enabled service layer. Applied Materials said that more than 35,000 chambers are connected to its AIx software capabilities, which use AI-powered monitoring, diagnostics and analytics. This matters because Applied Materials’ broader AI and advanced-node strategy depends on execution, visibility and support after installation.

In that setting, AGS helps stabilize Applied Materials’ revenue base, deepen customer relationships and improve operating leverage as the company scales. The segment’s margin profile, recurring nature and AI-driven service enhancements make it a valuable part of Applied Materials’ long-term earnings power.

How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .

ASML is experiencing strong demand from DRAM and logic customers, which are ramping up leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps shorten cycle time and lower costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making the stock worth holding.

Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.

AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 104.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 27.4%.

AMAT YTD Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 12.81X, higher than the industry’s average of 10.48X.

AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 29% and 34%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past seven days.

Image Source: Zacks Investment Research

Applied Materials currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Applied Materials (NASDAQ: AMAT | AMAT Price Prediction) and KLA (NASDAQ: KLAC) both closed strong quarters tied to AI infrastructure buildout. Applied posted Q2 FY2026 revenue of $7.91 billion on May 14, 2026. KLA reported Q3 FY2026 revenue of $3.415 billion on April 29, 2026. Both beat consensus. Their playbooks look nothing alike.

AI Fab Tools Lift One. Inspection Dominance Lifts the Other. Applied’s Semiconductor Systems segment delivered $5.965 billion at a 35.1% operating margin, up from 32.8%. DRAM mix moved to 29% of that segment, reflecting real HBM pull. CEO Gary Dickerson told investors Applied delivered “record quarterly performance” and now expects the semi equipment business to grow more than 30% in calendar 2026, raised from an earlier 20% call. That is a rare mid-cycle upgrade.

KLA’s story is narrower and richer. Process Control brought in $3.083 billion, roughly 90% of revenue, at a non-GAAP gross margin guide of 61.75% for June. Rick Wallace flagged “continued market share momentum in process control” backed by third-party industry data. Fewer product lines, harder moat.

Business Driver AMAT KLA Main revenue engine Semi Systems $5.965B Process Control $3.083B YoY revenue growth 11.4% 11.5% China revenue share 27% Meaningful, more insulated per analysts Breadth Play vs. Specialist Fortress Applied is widening the net. New Gate-All-Around tools like Precision Selective Nitride PECVD and Trillium ALD, the agreement to acquire ASMPT’s NEXX business for panel-level advanced packaging, and EPIC Center partnerships with TSMC, SK hynix, Micron and Samsung keep Applied embedded in every atomic-layer transition. This makes AMAT the more comprehensive AI manufacturing play, capturing raw physical volume of global foundry expansion.

KLA leans harder on one dominant niche. Inspection and metrology carry structurally higher margins, and Barclays upgraded KLAC to Overweight citing relative insulation from China export controls. The tradeoff: KLA’s diagnostic business is sensitive to wafer-start fluctuations.

The Next Test Is Cash and China Applied’s free cash flow fell to $210 million, down 80.21% YoY on working capital consumption. KLA’s FCF also softened to $622 million, off 36.97%, but the absolute figure remains healthier. Watch whether Applied converts its Q3 revenue guide of roughly $8.95 billion into cash, and whether KLA hits its $3.575 billion June-quarter target.

Why I Lean Toward Applied Materials Right Now AMAT is the sharper AI-infrastructure vehicle today. The 30%+ calendar 2026 equipment growth call, GAA tool ramp, and HBM exposure line up with where fab spending is going. KLA remains a beautiful business, and its 17th consecutive dividend increase plus a fresh $7 billion buyback authorization reward patient holders. For direct leverage to physical AI capacity coming online, Applied offers the clearest exposure. That thesis weakens if China restrictions tighten materially or if Applied’s cash conversion stays weak past one more quarter.

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Applied Materials Inc. shares AMAT climbed nearly 7% on Thursday as semiconductor stocks rallied after reports that Meta Platforms plans to begin manufacturing its in-house artificial intelligence chip in September, boosting optimism around demand for wafer fabrication equipment and AI infrastructure.

The broader semiconductor rally also lifted Lam Research and KLA Corp., while optical networking company Lumentum led gains in the S&P 500.

Applied Materials gained nearly 7%, while Lam Research and KLA rose more than 6% as investors reacted to reports that Meta expects to begin work on its AI data-center chip, codenamed "Iris," using custom-built silicon. Reuters first reported the development.

The move was viewed as a positive development for companies supplying wafer fabrication equipment used to convert raw silicon wafers into microchips.

The rally comes as expectations continue to build around rising capital expenditure by hyperscale technology companies.

According to Citi, the wafer fabrication equipment market is expected to grow from about $145 billion this year to $200 billion in 2027 and $250 billion in 2028.

The brokerage also forecasts hyperscaler spending to increase 84% this year, 56% in 2027 and 38% in 2028.

Amazon, Microsoft, Alphabet, Meta Platforms and Oracle are expected to spend more than $1.1 trillion in 2027, up from $650 billion this year.

Brokerages also turned more optimistic on semiconductor equipment makers.

Mizuho Securities raised its price target on Applied Materials to $650 from $540 while maintaining its Outperform rating. It also increased its target on Lam Research to $400 from $380.

TD Cowen lifted its price target on Applied Materials to $700 from $525 while maintaining its rating on the stock.

The brokerage models wafer fabrication equipment spending reaching $250 billion in 2028 and potentially $400 billion by 2030, supported by stronger industry profitability and demand backed by take-or-pay agreements.

Under its $250 billion scenario, TD Cowen estimates Applied Materials could generate earnings of about $25 per share, compared with its calendar 2026 estimate of $13.35.

Lam Research could earn between $11 and $12 per share, while KLA could generate $9 to $10 per share.

The firm said Applied Materials would be the biggest beneficiary under that scenario, followed by KLA because of their exposure to leading-edge semiconductor manufacturing and DRAM investment.

Investor sentiment also received support from comments by Applied Materials CEO Gary Dickerson.

In an interview with Nikkei Asia, Dickerson said Applied Materials has “tremendous visibility” into customer demand over the next 24 months.

He added that chipmakers are providing equipment demand forecasts at least two years in advance, giving the company confidence that the AI-driven semiconductor investment cycle still has years to run.

AMAT Technicals Applied Materials continues to trade above its 20-day, 50-day and 200-day simple moving averages.

Its relative strength index stands at 53.70, a neutral reading, while traders are watching the 20-day moving average near $503 as the first support level and the 52-week high near $739.67 as the next major resistance.