Applied Materials Inc. (AMAT) saw its stock surge 5.69% in pre-market trading on Thursday, driven by RBC Capital Markets initiating coverage with an "Outperform" rating and a target price of $385. The bullish outlook from RBC has bolstered investor confidence in the semiconductor equipment maker.
The broader semiconductor sector also contributed to the positive sentiment, with stocks rallying after TSMC reported record quarterly profits and announced higher capital expenditure forecasts for 2026. This sector-wide optimism further supported Applied Materials' upward movement.