Applied Materials stock gains on India investment plan and record Q3 figures
Published on 09/17/2026 at 14:35 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Applied Materials, Inc. (ISIN US0382221051) stock was recently quoted at around USD 415.38 on Nasdaq as of September 16, 2026, with the shares down about 1.4 percent from the prior close of USD 421.17 but still near the upper end of their recent trading range. As Webull reported on September 17, 2026, the company has just delivered record fiscal third quarter 2026 revenue and earnings alongside a new quarterly dividend, giving investors fresh numbers to assess the valuation.
Record Q3 FY26 results underpin Applied Materials stock
According to Webull on September 17, 2026, Applied Materials reported record fiscal third quarter 2026 revenue of USD 9.12 billion, with non GAAP earnings per share of USD 3.50. This compares with a Zacks Consensus Estimate of USD 4.05 per share for the fourth quarter of fiscal 2026, highlighting that the company already generates strong profitability ahead of its next guidance targets as noted by The Globe and Mail.
In its semiconductor systems segment, Applied Materials achieved third quarter fiscal 2026 revenue growth of 27 percent year over year, underscoring how demand for wafer fabrication equipment continues to recover with the artificial intelligence and advanced logic upcycle, as detailed by The Globe and Mail. The Applied Global Services business also contributed, with record third quarter fiscal 2026 revenue of USD 1.78 billion, up 22 percent year over year, showing that service and spares demand benefits from high fab utilization.
Guidance and valuation signal a mixed picture
Looking ahead, Applied Materials expects non GAAP earnings of about USD 4.02 per share for the fourth quarter of fiscal 2026, plus or minus USD 0.20, according to The Globe and Mail. For investors, that guidance implies further earnings growth from the already strong Q3 FY26 base, supported by a forecast that semiconductor systems revenue in the fourth quarter will rise to about USD 7.9 billion, up roughly 62 percent year over year as highlighted in the same analysis.
At the same time, valuation metrics are increasingly demanding. On September 17, 2026, a fundamental review by GuruFocus argued that Applied Materials stock is trading about 68.0 percent above its GF Value estimate of USD 247.28 per share, with the current price of USD 415.38 implying significant overvaluation relative to this intrinsic value model. The same review notes that the trailing twelve month price to earnings ratio of 35.82 times stands well above the 5 year median P/E of 20.35 times, reinforcing that the market prices in a considerable growth premium.
India investment plan adds a strategic growth angle
Beyond quarterly numbers, the company has announced a major strategic move in India. On September 17, 2026, GuruFocus reported that Applied Materials plans to invest USD 5 billion over the next decade to bolster its semiconductor operations in India. The initiative includes building a 140 acre advanced semiconductor research park and expanding its local supply chain capacity tenfold by 2035, positioning the group to participate more directly in India’s emerging chip ecosystem. A parallel report from The Tribune India confirms the USD 5 billion commitment and places it in the context of broader equipment investments by global players.
For shareholders, the India plan can be seen as both an opportunity and a long term capital allocation question. The expanded research and supply chain footprint could support revenue growth and customer proximity across Asia, but it also means substantial spending over many years, which may be scrutinized against near term returns, especially given the current valuation premium described by GuruFocus.
Analyst sentiment remains broadly positive
Analyst houses continue to view Applied Materials favorably despite valuation concerns. As MarketBeat summarized in an instant alert on September 16, 2026, Applied Materials shares traded down about 1.4 percent on that day, with an intraday low of USD 411.51 and a last trade around USD 415.38, compared with a prior close of USD 421.17, but the consensus rating remains at Moderate Buy and the average price target stands at USD 658.45 per share, according to MarketBeat. A related MarketBeat alert on September 16, 2026 notes that one analyst rates the stock Strong Buy, 27 rate it Buy and five assign Hold, illustrating broad confidence in the company’s earnings trajectory as summarized by MarketBeat.
Individual analyst actions underscore this constructive stance. For example, Morgan Stanley has raised its price target on Applied Materials from USD 273 to USD 364 while maintaining an Overweight rating and expecting fiscal first quarter 2026 results to beat market expectations, as reported by etnet on September 17, 2026. UBS has also raised its target from USD 285 to USD 405 while retaining a positive view on the ability of the company to benefit from catch up sales to China, according to an earlier etnet feature cited in the same outlet.
Dividend and cash returns complement growth
Applied Materials continues to return cash to shareholders through dividends alongside growth investments. The Q3 FY26 release included board approval of a quarterly cash dividend of USD 0.53 per share, payable on December 10, 2026 to shareholders of record on November 19, 2026, per Webull. While the absolute dividend yield is modest relative to the stock price near USD 415.38, regular distributions can provide a stabilizing element in the capital structure and signal management confidence in cash flow.
The combination of rising earnings, a regular dividend and a long term India expansion plan means investors are weighing immediate financial strength against valuation metrics and geopolitical execution risks. Insider activity over the past twelve months has reportedly been tilted toward selling, with around USD 180.2 million in insider selling and no insider buying, according to the GF Value review by GuruFocus, which some investors may interpret as a cautious signal in light of the elevated valuation.
Applied Materials stock price and trading context
In terms of trading dynamics, Applied Materials stock closed around USD 415.38 on Nasdaq as of September 16, 2026, down approximately 1.4 percent from the prior close of USD 421.17 on the same venue, based on data cited by MarketBeat. Premarket indications on September 17, 2026 showed the shares near USD 424.95, up about 2.30 percent versus the prior close, according to an overview of premarket gainers from PremarketPrice. This suggests that the market is digesting the record Q3 FY26 figures and India investment news with a modestly positive bias, even as valuation debates continue.
Key data on Applied Materials stock
- Company: Applied Materials, Inc.
- ISIN: US0382221051
- Ticker: AMAT
- Trading venue: Nasdaq
- Price (as of September 16, 2026): 415.38 USD
- Market capitalization: 111.0 billion USD (as of September 16, 2026)
- Sector / Industry: Information Technology / Semiconductor Equipment
- Index membership: S&P 500
- Next earnings date: November 12, 2026
