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SANTA CLARA - Applied Materials, Inc. (NASDAQ:AMAT), a $135.5 billion market cap semiconductor equipment manufacturer with a "GOOD" InvestingPro Financial Health score, announced Friday that its Board of Directors has approved a quarterly cash dividend of $0.46 per share on the company’s common stock, payable on December 11, 2025, to shareholders of record as of November 20, 2025.
The semiconductor equipment manufacturer has maintained dividend payments for 21 consecutive years, with a current yield of 1.08%. The company has increased its dividend for eight consecutive years, and in March 2025, raised its quarterly dividend by 15 percent from $0.40 to the current $0.46 per share.
According to the company’s statement, Applied Materials has increased its dividend at a compound annual growth rate of approximately 15 percent over the past decade through fiscal 2024, while distributing nearly 90 percent of free cash flow to shareholders during this period.
In the third quarter of fiscal 2025, the company returned $1.4 billion to shareholders through a combination of dividends and share repurchases. The company reported approximately $14.8 billion remaining in its share repurchase authorization at the end of the quarter.
Applied Materials is a materials engineering company that provides manufacturing equipment, services, and software to the semiconductor and display industries. According to InvestingPro data, the company currently appears undervalued based on its Fair Value analysis, with 12 additional ProTips available for subscribers. The announcement came via a press release issued by the company.
In other recent news, Applied Materials has experienced several notable developments. The company faced a downgrade from Mizuho, which shifted its rating from Outperform to Neutral, citing market share losses in crucial product segments that contribute significantly to its revenue. Meanwhile, Daiwa Securities also downgraded Applied Materials from Outperform to Neutral due to weaker-than-expected quarterly results and slowing semiconductor demand, particularly outside of AI applications. CFRA has adjusted its price target for the company to $167, maintaining a Hold rating and expressing concerns over trade uncertainties impacting near-term demand.
On a more positive note, Cantor Fitzgerald reiterated its Overweight rating with a $200 price target, maintaining a favorable outlook despite recent market challenges. Similarly, TD Cowen reiterated its Buy rating, acknowledging concerns about the wafer fabrication equipment market and potential softness in leading-edge foundry/logic in the latter half of 2025. These recent developments highlight the mixed analyst perspectives on Applied Materials amid evolving industry conditions.
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