Applied Materials Stock Performance
Applied Materials shares closed at $390.09, reflecting a daily gain of 0.95% but significant underperformance over intermediate timeframes, per SID market data. The stock has declined 26.3% over the past month and 24.72% over the trailing three months, erasing a substantial portion of its prior gains. On a one-year basis, AMAT has still returned 31.78%, demonstrating longer-term resilience despite the recent sell-off. Technically, the stock trades well below both its 50-day moving average of $457.66 and its 200-day moving average of $448.05, signaling sustained bearish momentum according to Massive/Polygon data. The 14-day RSI has fallen to 25.0, placing the stock firmly in oversold territory. AMAT carries a beta of 1.677, indicating substantially higher volatility relative to the broader market. Average daily trading volume stands at approximately 7.49 million shares, supporting adequate liquidity for institutional participants. The current market capitalization is approximately $295.5 billion.
Applied Materials Valuation Analysis
Applied Materials currently trades at a price-to-earnings ratio of 37.66, reflecting a premium valuation relative to broader market averages, per SID market data. The PEG ratio stands at 3.01, suggesting the stock's earnings growth rate does not fully justify its elevated P/E multiple at current levels. The price-to-book ratio of 13.59 underscores the significant premium investors are paying over the company's net asset value, consistent with the capital-light, high-margin profile typical of semiconductor equipment leaders. According to SEC filings, Applied Materials offers a modest dividend yield of approximately 0.49%, positioning it primarily as a growth-oriented holding rather than an income vehicle. The Technology sector classification places AMAT among peers where premium valuations are common, though its PEG ratio above 3.0 warrants scrutiny. The recent price correction from elevated levels has compressed the P/E somewhat, but the stock remains priced for continued robust earnings expansion.
Smart Money Activity for AMAT
Applied Materials registers a smart money score of 54 out of 100, reflecting a neutral overall signal according to SID market data. The composite score reveals a divergence across tracking categories. Institutional activity scores a perfect 25 out of 25, indicating strong conviction from large asset managers and funds, per 13F institutional filings. Congressional trading activity is also elevated at 16.7 out of 25, suggesting notable interest from lawmakers with disclosed positions. Conversely, insider sentiment scores zero out of 25, driven by a pronounced sell bias. According to SEC Form 4 filings, there have been six insider transactions over the past 90 days, comprising five sales and only one purchase. This imbalance suggests corporate insiders have been reducing personal exposure during the stock's recent weakness. Dark pool activity registers at 12.1 out of 25, reflecting moderate off-exchange trading interest. The contrast between strong institutional positioning and persistent insider selling creates a mixed directional signal for AMAT.
Applied Materials Earnings Outlook
Applied Materials has delivered a consistent pattern of earnings beats across its three most recent reported quarters, according to company earnings reports. In Q4, the company posted earnings per share of $2.38 against an estimate of $2.20, representing a $0.18 positive surprise. Q3 results mirrored this strength with EPS of $2.86 versus the $2.68 consensus, again surpassing expectations by $0.18. The most recent Q2 quarter showed EPS of $3.50 compared to the $3.39 estimate, a $0.11 beat. This sequential EPS growth from $2.38 to $3.50 across three quarters demonstrates accelerating earnings momentum. Looking ahead, analyst estimates project Q1 EPS of $4.06, per consensus data, which would represent a further step-up in profitability if achieved. The upcoming earnings report is scheduled for November 12, 2026. The trajectory of rising estimates reflects growing confidence in Applied Materials' ability to capitalize on semiconductor equipment demand.
Wall Street Analyst Ratings for AMAT
Wall Street consensus on Applied Materials remains predominantly constructive despite the stock's sharp pullback, per SID consensus data. In mid-October 2026, Needham reiterated a Buy rating, while Evercore ISI Group maintained its Outperform recommendation, according to Wall Street analyst reports. RBC Capital also reaffirmed an Outperform rating on the stock. These reiterations amid a 26.3% one-month decline suggest analysts view the sell-off as disconnected from fundamental deterioration. Morgan Stanley represents the more cautious voice, maintaining an Equal-Weight rating as of late September 2026, providing a measured counterpoint to the bullish majority. UBS reiterated its Buy rating in early September 2026. Notably, none of the five most recent analyst actions involved downgrades; all were reiterations of existing ratings, indicating stable conviction levels across coverage firms. The clustering of Buy and Outperform ratings from four out of five covering analysts reflects broad agreement that Applied Materials' long-term growth trajectory in semiconductor equipment remains intact.
