Applied Materials Stock Drops 1.1% - What's Next?

Shares of the semiconductor equipment manufacturer decline amid broader market volatility

Apr. 16, 2026 at 9:13pm

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An extreme close-up of intricate, metallic banking machinery and gears, conveying a sense of the secure, institutional power of the financial industry through a cinematic, high-contrast visual style.The drop in Applied Materials' stock price reflects broader volatility in the tech sector, but analysts remain bullish on the semiconductor equipment maker's long-term prospects.Santa Clara Today

Shares of Applied Materials, Inc. (NASDAQ:AMAT) fell 1.1% on Thursday, trading as low as $384.30 before closing at $389.90. Trading volume was down 31% from the average daily volume. The stock has seen a recent run-up, with Wall Street analysts increasing their price targets and ratings on the company.

Why it matters

Applied Materials is a bellwether for the semiconductor industry, providing the critical equipment and software used to manufacture integrated circuits, display panels, and advanced materials. Its stock performance is closely watched as an indicator of broader trends in the tech sector and global supply chains.

The details

The drop in Applied Materials' stock price on Thursday came amid broader market volatility, with the Nasdaq Composite index also declining. Analysts remain bullish on the company, with 26 having a 'Buy' rating and an average price target of $368.29. The company recently reported strong Q2 2026 guidance and has seen its shares rise over 30% in the past year.

  • Applied Materials stock closed at $394.26 on the previous trading day.
  • Shares traded as low as $384.30 on Thursday before closing at $389.90.

The players

Applied Materials, Inc.

A U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials.

Stifel Nicolaus

An investment bank that increased its price target on Applied Materials from $340 to $450 and maintained a 'Buy' rating.

Wells Fargo & Company

A financial services firm that increased its target price on Applied Materials from $350 to $435 and maintained an 'Overweight' rating.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

Despite the stock's pullback, analysts remain bullish on Applied Materials' long-term prospects as a key supplier to the semiconductor industry. The company's strong guidance and continued investments in advanced manufacturing technologies suggest it is well-positioned to capitalize on ongoing demand for chips and displays.