Applied Materials, Inc. (NASDAQ: AMAT) is extending its powerful November rally on Wednesday, November 26, 2025, as investors continue to price in booming AI chip demand, expanding margins and a wave of fresh analyst upgrades.
As of the latest trading data on Wednesday, AMAT shares are changing hands around $249, up roughly 2.6% on the day, after opening near $243 and trading between about $242.5 and $249.6 on solid volume of more than 3.3 million shares.
That move builds on Tuesday’s roughly 5% surge, driven by nearly $1.94 billion in trading volume and institutional inflows, according to AInvest, which highlighted AMAT as one of the most actively traded U.S. names. [1]
On Tuesday, the stock also hit a 52‑week high around $242.57, capping a roughly 33–50% price gain over the past year and a near‑50% year‑to‑date run that has outpaced many semiconductor peers. [2]
Key takeaways for AMAT stock today
- Price action: AMAT trades near $249 on Wednesday, up about 2–3% after a 5% rally on Tuesday and a fresh 52‑week high. [3]
- Momentum vs peers: Shares are up about 49–50% year‑to‑date, beating both its semiconductor industry group and the SOXX ETF’s returns. [4]
- Earnings backdrop: Fiscal Q4 2025 revenue came in at $6.8 billion (‑3% YoY), with GAAP EPS of $2.38 and non‑GAAP EPS of $2.17; full‑year revenue hit a record $28.37 billion. [5]
- Margin story: Non‑GAAP gross margin improved to the high‑40% range, supported by high‑margin AI and advanced‑node products like Sym3 Magnum etch and advanced DRAM tools. [6]
- Analyst sentiment: TD Cowen raised its price target to $260 and kept a Buy rating; UBS recently upgraded AMAT to Buy with a $285 target, while overall Street consensus sits around “Moderate Buy” with an average target near $228. [7]
- Institutional flows: Multiple institutional investors, including Laurel Wealth Advisors and MIG Capital, have significantly increased positions, while others like Himension Capital Singapore trimmed holdings modestly. [8]
- Risks: U.S. export controls are expected to cut about $600 million from fiscal 2026 revenue, and management sees weaker China spending in 2026 even as global wafer‑fab equipment (WFE) demand is expected to accelerate later that year. [9]
AMAT stock today: price, performance and trend
In Wednesday trading, AMAT’s last quoted price near $249 leaves the stock:
- Roughly 2.6% higher vs. Tuesday’s close,
- Within a day’s range of about $242.55–$249.57,
- Above its recent 52‑week range of $123.74–$244.62 cited in institutional research. [10]
MarketBeat notes that AMAT’s 50‑day and 200‑day moving averages sit around $221 and $191, respectively, and that the stock has been trading above both since mid‑September — a classic technical sign of a strong uptrend. [11]
From a performance standpoint:
- Year‑to‑date: Shares have gained about 49.5% in 2025. [12]
- Last 6 months: Investing.com pegs the move at roughly 47% over that span. [13]
- Last 12 months: AMAT is up around 34–39%, outpacing the iShares Semiconductor ETF (SOXX), which is up about 30% over the same period. [14]
That combination of price momentum, moving‑average strength and strong liquidity keeps AMAT firmly on the radar of active traders and institutional investors this week.
Earnings recap: AI‑driven mix and expanding margins
Applied Materials’ fiscal Q4 2025 and full‑year 2025 results, released on November 13, are still the primary fundamental driver behind the recent rally. [15]
Headline numbers
According to the company’s official earnings release:
- Q4 net revenue:$6.80 billion, down 3% year over year.
- Full‑year net revenue:$28.37 billion, a 4% increase vs. 2024, marking the sixth straight year of growth.
- Q4 GAAP EPS:$2.38, up 14% YoY.
- Q4 non‑GAAP EPS:$2.17, down 6% YoY.
- Full‑year GAAP EPS:$8.66; non‑GAAP EPS:$9.42, up about 1% and 9% respectively. [16]
Margin profile
The same report shows that AMAT’s non‑GAAP gross margin:
- Reached 48.1% in Q4, up from 47.5% a year earlier.
- Climbed to 48.8% for the full fiscal year, about 1.2 percentage points higher year over year. [17]
Zacks, in a research note published today, emphasizes that margins have improved for roughly six consecutive quarters, driven by a richer mix of high‑margin AI and high‑performance computing tools — including its Sym3 Magnum etch platform, Cold Field Emission eBeam inspection technology, gate‑all‑around and backside‑power solutions, and 3D DRAM nodes. [18]
R&D spending continues to rise: research, development and engineering expenses in Q4 climbed to $917 million from $858 million a year earlier, reflecting heavy investment in next‑generation process technologies. [19]
Management is partly offsetting that higher R&D bill by tightening general and administrative costs and selectively reducing headcount, aiming to “scale productively while maintaining margins,” according to the Zacks summary. [20]
Guidance
For Q1 fiscal 2026, Applied Materials is guiding to: [21]
- Total net revenue: about $6.85 billion, plus or minus $500 million.
- Non‑GAAP EPS: around $2.18, plus or minus $0.20.
That outlook came in slightly ahead of Wall Street’s consensus at the time of the release, a key factor cited by TD Cowen in its bullish call. [22]
Analyst moves: TD Cowen to $260, UBS to $285 and a “Moderate Buy” consensus
Today’s news flow around AMAT is dominated by fresh and reiterated analyst calls.
TD Cowen: Price target to $260, Buy maintained
In a report highlighted overnight, TD Cowen raised its price target on AMAT from $250 to $260 and reaffirmed a Buy rating. The firm pointed to: [23]
- Guidance that landed slightly above consensus.
- Visibility into stronger demand from the second half of 2026, despite export‑control headwinds in China.
- Ongoing investment in R&D to support faster, more energy‑efficient chips and systems.
TD Cowen also notes that while China wafer‑fab equipment (WFE) spending is expected to decline in 2026, that risk is “mostly mitigated” by upside surprises in prior years and robust global AI‑related demand. [24]
UBS, Stifel, Craig‑Hallum and others
An Investing.com recap of recent coverage underscores a mixed but generally constructive Wall Street stance: [25]
- UBS upgraded AMAT from Neutral to Buy, lifting its price target to $285, citing expectations for a multiyear upswing in WFE demand, especially in DRAM and AI‑focused memory.
- Stifel reiterated a Buy rating with a $250 price objective.
- Craig‑Hallum downgraded the stock from Buy to Hold, keeping a $190 target, reflecting concerns around the timing of certain growth drivers, including ICAPS and China.
On top of those moves, MarketBeat data (as aggregated in several institutional‑flow articles published today) show: [26]
- 20 analysts rate AMAT a Buy,
- 14 rate it a Hold,
- Resulting in a “Moderate Buy” consensus and an average price target of about $228.
Valuation snapshot
Different sources peg valuation slightly differently, but the broad picture is consistent:
- Trailing P/E: around 28–29x earnings. [27]
- Forward price‑to‑sales: roughly 6.6x, below the 7.7x average for the broader electronics‑semiconductor group, according to Zacks. [28]
- Market cap: near $190–193 billion at current prices. [29]
Zacks currently assigns AMAT a Rank #3 (Hold), reflecting strong fundamentals but also the stock’s big run‑up and cyclical risks. [30]
Institutional and insider activity: big buys and selective trimming
A notable portion of today’s AMAT news stream centers on institutional filings and insider activity, highlighting how large investors are positioning after the earnings beat.
Laurel Wealth Advisors and MIG Capital add aggressively
Two MarketBeat “instant alert” pieces out today show aggressive buying from certain institutions: [31]
- Laurel Wealth Advisors LLC boosted its AMAT stake by 18,207% in Q2, purchasing an extra 149,844 shares to reach 150,667 shares valued around $27.6 million.
- MIG Capital LLC increased its position by 316.1%, adding 11,514 shares to own 15,157 shares worth roughly $2.78 million.
Both reports emphasize that around 80.6% of Applied Materials stock is held by institutions and hedge funds.
Himension Capital trims, insiders lock in gains
On the flip side, a separate MarketBeat note reports that Himension Capital Singapore PTE. LTD. cut its AMAT position by 7.1%, selling 3,627 shares to end Q2 with 47,689 shares valued at about $8.73 million. [32]
The same filing roundup highlights that:
- Company insiders own a modest 0.24% of shares.
- Senior vice president Teri A. Little recently sold 4,000 shares at an average price of about $234, a transaction worth roughly $936,000, while still retaining more than 88,000 shares. [33]
Overall, the data suggest net institutional accumulation with some profit‑taking at the margin, consistent with a stock that has rallied sharply in a relatively short period.
Strategic backdrop: AI capex boom vs. China export controls
Beyond the numbers, Wednesday’s commentary continues to circle around a central question: Can Applied Materials continue to grow into its AI‑driven narrative while navigating stricter export rules and cyclical spending?
AI‑led product mix
Zacks’ margin analysis stresses that AMAT is benefiting from high‑value positions at key technology “inflections”: [34]
- Leading‑edge logic and foundry nodes used in AI accelerators and high‑performance computing (HPC).
- 3D DRAM and advanced memory technologies critical for AI servers.
- Metrology and inspection solutions (like Cold Field Emission eBeam) that operate at nanometer scale for next‑gen chips.
This product mix supports higher average selling prices and better margins, and management says it is preparing operations and service teams for “higher demand beginning in the second half of calendar 2026.” [35]
Export‑control and China risk
At the same time, Reuters reports that Applied expects spending on chip‑equipment in China to fall in 2026, as tighter U.S. export controls limit its ability to ship certain tools and services. The company has previously estimated a roughly $600 million hit to fiscal 2026 revenue from new rules. [36]
Key points from management’s latest commentary: [37]
- AMAT’s China revenue share has dropped from nearly 40% of sales to the “mid‑20%” range.
- Non‑U.S. competitors do not face the same restrictions, enabling them to sell into customers that Applied can no longer serve.
- Despite this, customer conversations suggest WFE spending is likely to accelerate beginning in H2 2026, especially in memory, offering a potential offset to lost Chinese demand.
This push‑and‑pull between AI‑driven growth and regulatory headwinds is a central theme for investors assessing whether AMAT’s ~28x earnings multiple is sustainable. [38]
Dividend, balance sheet and capital returns
Applied Materials also offers a modest but growing dividend supported by a solid balance sheet.
Recent institutional notes highlight that: [39]
- The company declared a quarterly dividend of $0.46 per share, payable December 11 to shareholders of record as of November 20, implying a $1.84 annual payout and a yield around 0.8% at current prices.
- AMAT ended fiscal 2025 with $20.9 billion in current assets, including more than $8.5 billion in cash and short‑term investments, against $6.6 billion in total debt, giving it flexibility to continue R&D investment, buybacks and dividends.
For income‑oriented investors, the yield is modest, but the company’s cash‑generation profile and share‑repurchase history add another layer to the total‑return story.
Upcoming catalysts: UBS Global Tech & AI Conference and AI capex commentary
Looking ahead, one near‑term focal point is Applied Materials’ appearance at the UBS Global Technology and AI Conference.
The company has confirmed that CFO Brice Hill will take part in a fireside chat on Tuesday, December 2 at 7:55 a.m. PT / 10:55 a.m. ET, with a live audio webcast available via the investor‑relations website. [40]
Investors will be listening for:
- Updated commentary on AI server and memory demand,
- Any refinement to 2026 WFE spend expectations,
- Further detail on how AMAT plans to navigate export controls while maintaining growth.
Beyond that conference, the next major milestones will be:
- Industry data points on foundry and memory capex,
- Additional analyst revisions following the recent rally and upgrades,
- Macro signals that could influence broader tech and semiconductor valuations.
Why is AMAT stock up today?
Putting it all together, Applied Materials’ strength on November 26, 2025 is being driven by a cluster of positive factors:
- Strong technical momentum after earnings, with the stock breaking through prior highs and staying above key moving averages. [41]
- Margin expansion and record full‑year revenue, showing that the AI and advanced‑node narrative is translating into real profitability. [42]
- Upbeat guidance for Q1 2026 and management’s confidence in higher demand from the second half of 2026 onward. [43]
- Fresh analyst support, including a TD Cowen target hike to $260 and UBS’ upgrade to Buy with a $285 target, which reinforces the bull case. [44]
- Net institutional accumulation, as highlighted by large position increases from investors like Laurel Wealth Advisors and MIG Capital. [45]
Counter‑balancing these positives are regulatory risks around China, a cyclical equipment spending environment, and a valuation multiple that already prices in a significant portion of the AI upside.
Is Applied Materials (AMAT) stock a buy right now?
Whether AMAT is a buy at today’s levels depends on your time horizon, risk tolerance and portfolio mix:
- Bulls point to Applied Materials’ dominant position in key AI‑enabling technologies, expanding margins and a long runway of AI data‑center and memory capex.
- Cautious investors highlight the export‑control overhang, the possibility of a pause or digestion phase in WFE spending, and a valuation that’s above many historical averages for equipment makers. [46]
Most Wall Street analysts still see upside over a multi‑year horizon, but the “Moderate Buy” consensus and presence of multiple Hold ratings underline that expectations are high and execution will need to remain strong. [47]
References
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