Applied Materials faces sharp pullback after AI run, shares trade lower on Nasdaq

By Christina Vogel, Background & Management desk. Reviewed prior to publication on 2026-06-23, 20:52.

Applied Materials (US0382221051) trades markedly lower on the Nasdaq on Tuesday after a pronounced AI-driven rally in recent weeks. Intraday data show the shares down around 8 percent compared with Monday’s close, even as analyst houses continue to cite robust demand for semiconductor equipment linked to artificial intelligence and advanced packaging. Intraday quote and performance overview

What the price action shows

According to price data from FinancialContent, Applied Materials shares recently changed hands around 588 US dollars, versus a previous close of 640.18 US dollars, implying an intraday decline of more than 8 percent on the Nasdaq on June 23. FinancialContent intraday data for AMAT The same data set lists a trading range between roughly 573.51 and 592.50 US dollars for the session, underscoring elevated volatility after the stock’s move to a 52-week high of about 641.18 US dollars in recent days.

Figures compiled by StockAnalysis put the current market capitalization around 461 billion US dollars, with a trailing price-earnings ratio of roughly 60 based on earnings per share of about 10.63 US dollars. StockAnalysis profile and valuation metrics That leaves Applied Materials among the largest and more highly valued constituents in the global semiconductor equipment space, alongside peers such as ASML and Lam Research.

Analysts stay constructive on AI demand

Despite the short-term pullback, analyst reports continue to emphasize structural demand drivers from AI-related investments and advanced chip manufacturing. StockAnalysis cites a consensus "Strong Buy" stance on Applied Materials, with an average price target in the low 530 US dollar range, even though some targets currently sit below the latest trading levels after the strong year-to-date rally. Analyst consensus snapshot Earlier in June, Citi analyst Atif Malik raised the firm’s price target to 710 US dollars from 550 US dollars while reiterating a Buy rating, arguing that accelerating AI spending and growing demand for memory and advanced packaging tools support higher medium-term earnings power. Citi price-target update as cited by StockAnalysis

Additional coverage collated by MarketBeat points to a cluster of Buy recommendations from houses such as BofA and New Street Research, which highlight Applied Materials’ positioning across wafer fabrication equipment and specialty systems for leading-edge logic and memory nodes. MarketBeat news and analyst commentary on AMAT At the same time, some commentary notes increased focus on valuation and insider sales after the share price advance, factors that can amplify profit-taking phases when market sentiment turns more cautious.

The product behind the stock

Applied Materials generates most of its revenue by supplying production equipment, services and software used to manufacture semiconductor chips for logic, memory and storage devices in fabs worldwide. Company business description and segment focus The portfolio spans deposition, etch, inspection and metrology systems, as well as tools for display manufacturing and other materials engineering applications.

Where the shares trade today

The Applied Materials shares (US0382221051) most recently traded on the Nasdaq at about 588 US dollars on 2026-06-23 at 13:01 Eastern, based on FinancialContent intraday data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. All data are based on sources considered reliable but cannot be guaranteed. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.