Key insights
- Applied Materials President Raja Prabu G. sold $25.26 million in stock, raising concerns about insider confidence despite the company's strong recent performance and positive analyst ratings. While the sale is attributed to indirect holdings and potential vesting of units, a significant insider sell-off can signal a belief that the stock may be overvalued or facing headwinds, potentially impacting investor sentiment for AMAT and the broader semiconductor sector.
Raja Prabu G., President of the Semiconductor Products Group at Applied Materials Inc. (NASDAQ:AMAT), sold common stock totaling approximately $25.26 million on June 4, 2026. The transactions involved the disposal of 50,000 shares, with prices per share ranging from $503.99 to $507.23. The sale comes as Applied Materials, with a market cap of $362 billion, has surged 208% over the past year. According to InvestingPro analysis, the stock currently trades above its Fair Value, placing it among overvalued semiconductor stocks. The company remains a prominent player in the Semiconductors & Semiconductor Equipment industry.
The shares were sold in multiple transactions and were held indirectly through a Living Trust. Following these sales, Mr. Prabu G.’s indirect holdings in Applied Materials common stock stand at 356,642 shares.
Additionally, Mr. Prabu G. holds 100,663 shares directly. This direct holding includes performance share units and restricted stock units that are scheduled to convert into shares of Applied Materials common stock upon vesting between December 2026 and December 2028. The actual number of shares for performance units may vary based on the achievement of specified performance goals. The increase in directly held shares also reflects periodic payroll acquisitions under an Employees’ Stock Purchase Plan.
This information was disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Applied Materials plans to increase its workforce in Southeast Asia by 25% this year, adding approximately 1,000 workers, primarily in Singapore. This expansion underscores the growing importance of the region for the company’s manufacturing and research operations. Additionally, Cantor Fitzgerald has reiterated an Overweight rating on Applied Materials, citing the company’s early-stage involvement in the AI trade and its potential impact on wafer fabrication equipment spending. Mizuho has raised its price target for Applied Materials to $540, maintaining an Outperform rating, and has increased its estimates for wafer fabrication equipment spending in 2026 and 2027 due to anticipated growth in AI logic and memory fab capacity.
Moreover, Applied Materials announced that Broadcom will join its EPIC platform to collaborate on advanced chip packaging technologies for AI systems. This partnership aims to enhance interconnect density and bandwidth in semiconductor systems, leveraging Applied Materials’ global innovation centers. Meanwhile, Lynx Equity has defended Applied Materials against recent negative sentiment, maintaining a bullish price target of $540. The firm bases its positive outlook on the expected NAND wafer fabrication equipment cycle and overall WFE cycle management guidance. These developments reflect ongoing strategic initiatives and market evaluations for Applied Materials.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Most traders can read a chart. The hard part is the moment: entry window open, pattern forming, and you're still waiting for more confirmation. That's the conviction gap — and our chart analysis closes it. Unlike other AIs that just read data, our Vision AI literally "sees" your charts and hands you a complete trading plan: entry, stop-loss, and profit target in under 60 seconds. Know exactly what to do next, every time.