In this article you will learn:
- Why Applied Materials stock is currently in such high focus
- What news was important recently
- How the share price has developed
- Which figures are of particular interest to investors at Applied Materials?
- What could become important in the coming weeks
- What analysts say about the price target
- What role does the dividend play?
- Questions you should ask yourself as a beginner
- How TransparentShare rates the stock
- Current buy recommendations at TransparentShare
- Conclusion on Applied Materials stock
Applied Materials stock: Why is it currently in such high focus?
Applied Materials is one of the world's leading companies for semiconductor manufacturing equipment. The company produces the machines and systems that chip factories around the world use to manufacture their semiconductors. Without Applied Materials, many of the most advanced chips for artificial intelligence, smartphones, and data centers would simply not be possible to manufacture.
The global expansion of AI infrastructure is driving a significant increase in demand for such manufacturing equipment. Chip companies like TSMC, Samsung, and SK hynix are investing heavily in new capacities. As one of the industry's largest equipment suppliers, Applied Materials stands to directly benefit from these investments.
TransparentShare recommended buying Applied Materials stock on February 5, 2026, at a price of €252. Since then, the share price has risen significantly: As of July 13, 2026, the stock was trading at €505.60, representing an increase of approximately 100 percent.
Applied Materials News: What events have been important in recent weeks?
In May 2026, Applied Materials reported record results for the second quarter of fiscal year 2026. Revenue rose to $7.91 billion, an increase of 11 percent compared to the same period of the previous year. Particularly noteworthy is the company's 33 percent increase in earnings per share (EPS) based on generally accepted accounting principles (GAAP) to $3.51.
Another important topic was the expansion of the so-called EPIC Center in Silicon Valley. Applied Materials announced new partnerships with TSMC, SK hynix, Micron Technology, and several universities. The goal is to accelerate the development of the next generation of AI chips and memory technologies. These collaborations demonstrate the company's strong involvement in future chip development.
What is the current share price?
According to TransparentShare, the Applied Materials share closed at €505.60 on July 13, 2026.
Over the last 12 months, a particularly impressive movement has been observed: the share price has risen by around 200 percent.
A similar picture emerges over the three-year period: Starting from a low of €109.60, the price has more than quadrupled. The strong upward movement began in mid-2025 and accelerated further in 2026. After such a strong price increase, even minor disappointments can lead to significant price declines.
What aspects of the figures are of particular interest to investors?
Revenue and profit: In the second quarter of fiscal year 2026, Applied Materials achieved record sales of $7.91 billion, an 11 percent increase year over year. Net income rose to $2.806 billion, a 31 percent increase. Earnings per share (GAAP) climbed to $3.51, while adjusted earnings per share (non-GAAP) reached $2.86, both new record highs. The gross margin was just under 50 percent, a very solid figure for a company in the semiconductor equipment industry.
Outlook: The company expects revenue of approximately $8.95 billion (plus or minus $500 million) for the third quarter of fiscal year 2026. Adjusted earnings per share are projected to be around $3.36. CEO Gary Dickerson stated that the company now anticipates growth in its semiconductor equipment business of more than 30 percent in calendar year 2026.
Evaluation: According to TransparentShare, the price-to-earnings ratio (the ratio of the share price to earnings per share) is currently around 44, based on both the current and the five-year average. This is elevated compared to historical levels and reflects high market expectations.
Market reaction: According to TransparentShare, the immediate reaction to the quarterly figures was neutral, with a decline of 0.40 percent compared to the S&P 500. The strong results were apparently already partially priced in on the reporting date. Subsequently, however, the stock continued its significant upward trend.
Applied Materials Outlook: What could be important in the coming weeks?
The next important date for Applied Materials is the release of its results for the third quarter of fiscal year 2026, expected on August 13, 2026. Investors will be watching closely to see whether the company can confirm or exceed its own revenue forecast of approximately $8.95 billion.
Furthermore, the development of the global AI investment cycle remains crucial. Should major chip manufacturers reduce their investments in new production capacities, or should geopolitical tensions affect semiconductor trading, this could also have a noticeable impact on Applied Materials.
Forecasts are no guarantee of future price movements. The current pullback from the year's high shows that even fundamentally strong companies are subject to short-term fluctuations at any time.
Target price: What do the analysts say?
According to data from Marketscreener Thirty-nine analysts are covering Applied Materials stock. The average price target is $612.20. The consensus among analysts is "Buy." Twenty-eight analysts recommend buying the stock. Four expect it to outperform the overall market. Six advise holding, while one analyst anticipates underperformance.
The average analyst price target is $612.20. This corresponds to approximately €535 and is therefore only slightly above the current price. However, the actual price target remains an average of analyst opinions and is not a reliable forecast.
Dividend 2026: Does this play a major role for investors?
Applied Materials pays a regular quarterly dividend. Most recently, it was increased by 15 percent to $0.53 per share per quarter in the second quarter of 2026. This marks the ninth consecutive year of dividend increases. According to TransparentShare, the current dividend yield is 0.34 percent.
Given the significantly increased share price, the dividend yield is low. Applied Materials is primarily a growth stock, meaning investors are less focused on ongoing dividend income and more on share price appreciation. Nevertheless, the regular dividend increases demonstrate that the company shares its profits with shareholders.
Investors who prioritize high payouts will find Applied Materials' dividend to be only a small contributor. However, the company's dividend history can still be viewed positively as a sign of its financial strength and reliability.
Should you buy Applied Materials stock or not: What questions should you ask yourself as a beginner?
Before making a decision, it's worth answering the following questions honestly:
- Is a technology stock with an elevated valuation suitable for my personal risk tolerance?
- Can I withstand short-term price fluctuations of 20 percent or more without getting nervous?
- Do I understand that the share price is heavily dependent on the future course of global AI investments?
- Is the stock only a small part of my portfolio, or would it make up a very large portion?
- Do I have a clear plan for what I will do if the price drops significantly?
None of these questions can be answered in general terms. It's about making a decision based on your own strategy, not on headlines or past price movements.
This article does not constitute a purchase recommendation. It is intended to help you organize the most important information and ask your own questions.
How does TransparentShare rate Applied Materials stock?
According to TransparentShare's systematic stock analysis, Applied Materials stock has a "buy" rating as of July 13, 2026. The share price is currently around 20.57 percent below its yearly high.
TransparentShare evaluates over 1,300 stocks worldwide according to a clearly defined set of criteria and updates the ratings regularly. The classification is based on 12 objective key figures and provides structured guidance, but does not replace individual investment advice.
You can view the full evaluation with all individual criteria directly in the app.
View the full Applied Materials review now
64 buy recommendations at TransparentShare
TransparentShare currently recommends 64 shares to buy. The evaluation is current as of July 13, 2026. Over 1,300 stocks worldwide are evaluated.
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Applied Materials stock: Conclusion
Over the past twelve months, Applied Materials stock has become one of the most notable performers in the technology sector. Strong quarterly results, a clear growth outlook, and close ties to the world's leading AI chip manufacturers have been key drivers of its price performance.
At the same time, the valuation, as measured by price-to-earnings ratios, is elevated, and the share price has already retreated noticeably after reaching a high. Those interested in the stock should keep an eye on further quarterly results and developments in the global AI investment cycle.
The TransparentShare app can help you systematically track the valuation over time and compare it with other stocks without having to research all the key figures yourself.
Undervalued stocks of week 29 in 2026
Applied Materials is among the Undervalued stocks of week 29, TransparentShare presents its weekly stock recommendations. Sign up for the free newsletter and never miss a new stock recommendation.
Where can I find official information about Applied Materials?
Official and up-to-date information about Applied Materials can be found on the company's investor relations page at ir.appliedmaterials.com. Quarterly results, presentations, and press releases are published there.
The results for the second quarter of fiscal year 2026, on which this article is partly based, can be found directly below. the quarterly results on the investor relations page. Original sources give you a reliable overview of the actually reported figures.
Frequently Asked Questions about Applied Materials Stock
What exactly does Applied Materials do and why is the company relevant to the field of AI?
Applied Materials manufactures machines and equipment used to produce semiconductors. Without this equipment, chip factories like TSMC or Samsung could not produce advanced chips for artificial intelligence, smartphones, or data centers. This makes the company a crucial part of the entire AI supply chain.
How has Applied Materials stock performed over the past three years?
Over the three-year period ending in July 2026, the share price rose from a low of around US$124 to over US$600. The strongest part of the upward movement began in mid-2025. The price was supported, among other things, by the increasing demand for semiconductor equipment for the global expansion of AI. Interim pullbacks have shown that the price can fluctuate even with a positive underlying trend.
Does Applied Materials pay a dividend?
Yes, Applied Materials pays a quarterly dividend. It was last increased by 15 percent in 2026 to $0.53 per quarter, marking the ninth consecutive year of dividend increases. The current dividend yield is low at around 0.34 percent, as the share price has risen sharply. Applied Materials is therefore considered more of a growth stock than a dividend stock.
Risk warning: The assessments provided by TransparentShare are for informational purposes only and do not replace individual advice. All information is provided without guarantee.
This article was initially created with AI support and reviewed and approved by the TransparentShare editorial team before publication.
