Applied Materials settles with U.S. Commerce Department, agreeing to pay $252.5 million over export regulation misunderstandings.
Quiver AI Summary
Applied Materials, Inc. has reached a settlement with the U.S. Department of Commerce, resolving allegations regarding non-compliance with export regulations for shipments to China from November 2020 to July 2022. The company will pay $252.5 million to settle the matter, while the related investigations by the Department of Justice and the SEC have been closed without action. Applied Materials expressed satisfaction with the resolution and reaffirmed its commitment to compliance and strong export-control practices. The company is now focusing on its technology roadmap and meeting the rising demand for advanced semiconductor innovations.
Potential Positives
- Applied Materials successfully reached a settlement with the U.S. Department of Commerce, resolving allegations related to export regulation misunderstandings without further legal action.
- The closure of investigations by the U.S. Department of Justice and the SEC, without any actions taken against the company, demonstrates a positive outcome for Applied Materials.
- The company expressed confidence that resolving this regulatory matter is in the best interest of its stakeholders, reinforcing its commitment to compliance and integrity.
- With this issue resolved, Applied Materials can now focus on executing its technology roadmap and addressing the growing demand for advanced semiconductor innovation.
Potential Negatives
- The company is incurring a substantial financial penalty of $252.5 million due to alleged violations of export regulations, which may impact its financial position and investor confidence.
- The settlement indicates potential weaknesses in the company’s compliance and regulatory understanding, raising concerns about its operational oversight and governance practices.
FAQ
What settlement did Applied Materials reach with the U.S. Department of Commerce?
Applied Materials agreed to pay $252.5 million to settle allegations of non-compliance with export regulations related to customer shipments to China.
When did the alleged export compliance issues occur?
The issues occurred between November 2020 and July 2022.
What other investigations were closed alongside the settlement?
The U.S. Department of Justice and the SEC closed their related investigations without action against Applied Materials.
Why did Applied Materials choose to settle with the Department of Commerce?
Applied believes that resolving this matter is in the best interest of the company, its customers, employees, and shareholders.
What is Applied Materials' commitment regarding compliance practices?
Applied Materials is committed to maintaining strong export-control and trade-compliance practices across its global operations.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AMAT Insider Trading Activity
$AMAT insiders have traded $AMAT stock on the open market 3 times in the past 6 months. Of those trades, 0 have been purchases and 3 have been sales.
Here’s a breakdown of recent trading of $AMAT stock by insiders over the last 6 months:
- TERI A. LITTLE (SVP, CLO) has made 0 purchases and 2 sales selling 8,000 shares for an estimated $1,889,262.
- ADAM SANDERS (Corp. Controller & CAO) sold 609 shares for an estimated $155,620
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$AMAT Revenue
$AMAT had revenues of $6.8B in Q4 2025. This is a decrease of -3.48% from the same period in the prior year.
You can track AMAT financials on Quiver Quantitative's AMAT stock page.
$AMAT Congressional Stock Trading
Members of Congress have traded $AMAT stock 2 times in the past 6 months. Of those trades, 2 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $AMAT stock by members of Congress over the last 6 months:
- SENATOR MARKWAYNE MULLIN purchased up to $50,000 on 12/29.
- REPRESENTATIVE DAN NEWHOUSE purchased up to $15,000 on 08/18.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$AMAT Hedge Fund Activity
We have seen 1,115 institutional investors add shares of $AMAT stock to their portfolio, and 1,179 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CAPITAL RESEARCH GLOBAL INVESTORS added 17,829,377 shares (+119.8%) to their portfolio in Q4 2025, for an estimated $4,581,971,595
- UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC added 16,986,059 shares (+1334.4%) to their portfolio in Q3 2025, for an estimated $3,477,725,719
- KINGSTONE CAPITAL PARTNERS TEXAS, LLC removed 4,819,994 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $986,845,571
- PRICE T ROWE ASSOCIATES INC /MD/ removed 3,932,086 shares (-46.4%) from their portfolio in Q3 2025, for an estimated $805,055,287
- AMERIPRISE FINANCIAL INC added 3,583,751 shares (+40.1%) to their portfolio in Q3 2025, for an estimated $733,737,179
- COATUE MANAGEMENT LLC added 3,349,048 shares (+inf%) to their portfolio in Q3 2025, for an estimated $685,684,087
- SANDERS CAPITAL, LLC added 3,280,730 shares (+42.6%) to their portfolio in Q3 2025, for an estimated $671,696,660
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$AMAT Analyst Ratings
Wall Street analysts have issued reports on $AMAT in the last several months. We have seen 14 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Morgan Stanley issued a "Overweight" rating on 02/02/2026
- Deutsche Bank issued a "Buy" rating on 01/23/2026
- Needham issued a "Buy" rating on 01/20/2026
- RBC Capital issued a "Outperform" rating on 01/15/2026
- Barclays issued a "Overweight" rating on 01/15/2026
- B. Riley Securities issued a "Buy" rating on 12/18/2025
- UBS issued a "Buy" rating on 11/25/2025
To track analyst ratings and price targets for $AMAT, check out Quiver Quantitative's $AMAT forecast page.
$AMAT Price Targets
Multiple analysts have issued price targets for $AMAT recently. We have seen 20 analysts offer price targets for $AMAT in the last 6 months, with a median target of $360.0.
Here are some recent targets:
- Srini Pajjuri from RBC Capital set a target price of $385.0 on 02/10/2026
- Atif Malik from Citigroup set a target price of $400.0 on 02/04/2026
- Shane Brett from Morgan Stanley set a target price of $364.0 on 02/02/2026
- Vijay Rakesh from Mizuho set a target price of $370.0 on 01/28/2026
- Melissa Weathers from Deutsche Bank set a target price of $390.0 on 01/23/2026
- Charles Shi from Needham set a target price of $390.0 on 01/20/2026
- Steve Barger from Keybanc set a target price of $380.0 on 01/16/2026
Full Release
SANTA CLARA, Calif., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that it has reached a settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The settlement resolves BIS’s allegations that certain customer shipments to China between Nov. 2020 and July 2022 did not comply with the U.S. Export Administration Regulations, based on the company’s misunderstanding of the applicability of those regulations. Under the terms of the settlement, Applied has agreed to pay $252.5 million to the Department of Commerce. In addition, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) have notified Applied that they have closed their related investigations without action.
Applied Materials is pleased that the Department of Justice and SEC have closed their respective reviews, and that a civil settlement has been reached with the Department of Commerce, concluding the U.S. government’s review. Applied believes that resolving this matter is in the best interest of the company, its customers, employees and shareholders. Integrity and compliance are core to how Applied operates, and the company remains fully committed to maintaining strong export-control and trade-compliance practices across its global operations. With this matter closed, Applied is focused on executing our technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding the company’s business and growth strategies, industry outlooks, expected benefits of the settlement with BIS and the effectiveness of the company’s compliance programs. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include the risks and uncertainties described in Applied’s most recent Form 10-K and other Securities and Exchange Commission filings. All forward-looking statements are based on management’s current estimates, projections and assumptions, and Applied assumes no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at
www.appliedmaterials.com
.
Contact:
Ricky Gradwohl
(editorial/media) 408.235.4676
Mike Sullivan
(financial community) 408.986.7977
