Applied Materials Inc Stock Moved Down by 5.71% on Feb 26: A Full Analysis

Applied Materials experienced a downward movement in its stock price today, likely driven by a combination of factors including profit-taking after recent gains and disclosures of significant share divestments by institutional and insider parties. Despite a generally positive outlook for the semiconductor industry and recent favorable company-specific news, market participants appear to be re-evaluating the stock's valuation.

The company recently reported strong fiscal first-quarter earnings for 2026, surpassing analyst expectations for both revenue and earnings per share. This positive financial performance was complemented by robust guidance for the second quarter of fiscal 2026, with projections for both revenue and EPS exceeding consensus estimates. Applied Materials has highlighted strong demand from artificial intelligence (AI) related infrastructure, particularly in advanced logic, high-bandwidth memory, and advanced packaging, which is expected to drive the semiconductor equipment business to grow over 20% in the current calendar year.

Furthermore, multiple research firms have recently upgraded their price targets and reiterated "Buy" or "Overweight" ratings for Applied Materials throughout February, reflecting positive sentiment among analysts. The broader semiconductor industry itself is projected to see significant growth in 2026, reaching substantial annual sales, largely propelled by the intensifying AI infrastructure boom.

However, recent Form 13F filings indicate that some institutional investors, such as Vestmark Advisory Solutions Inc. and Boston Trust Walden Corp, reduced their holdings in Applied Materials during the prior quarter. Additionally, insider selling activity was reported from both a director and the CFO in the days leading up to today's trading. These actions, coupled with some valuation assessments indicating the stock may be significantly overvalued at current levels, could have prompted investors to take profits after the stock reached new 52-week highs. The ongoing geopolitical risks, including potential supply chain vulnerabilities related to rare earth materials and the concentration of advanced chip manufacturing in certain regions, also continue to introduce an element of uncertainty in the semiconductor sector.

Technically, Applied Materials Inc (AMAT) shows a MACD (12,26,9) value of [16.97], indicating a buy signal. The RSI at 74.16 suggests buy condition and the Williams %R at -0.96 suggests oversold condition. Please monitor closely.

Applied Materials Inc (AMAT) is in the Technology Equipment industry. Its latest annual revenue is 28.37B, ranking 10 in the industry. The net profit is 7.00B, ranking 6 in the industry. Company Profile

Over the past month, multiple analysts have rated the company as BUY, with an average price target of 406.32, a high of 470.00, and a low of 275.00.

Company Specific Risks:

• Applied Materials has agreed to pay a $252.5 million settlement to the U.S. Department of Commerce for alleged export regulation violations related to shipments to China between November 2020 and July 2022, with the resolution including mandates for internal audits of export controls compliance.
• The company reported a 2% year-over-year revenue decline for its first quarter ended January 25, 2026, indicating potential challenges in top-line growth.
• Applied Materials experienced a significant intraday stock price decline of 6.82% on Thursday, February 26, 2026, reflecting immediate negative market sentiment and volatility.
• Insider selling activity, with three insider sell transactions totaling 8,609 shares over the past three months, raises concerns regarding internal confidence in the company's future prospects.