Applied Materials (AMAT) shares surged 6.20% in the early intraday session on Friday, extending a strong pre-market rally that saw the stock gain as much as 5.03% earlier. The semiconductor equipment maker benefited from a broad sector-wide recovery, with peers including Lam Research, KLA-Tencor, and Teradyne also advancing.

The rebound comes after the sector faced triple headwinds: pressure from Michael Burry's bearish positions on AI and semiconductor stocks, concerns over returns on AI infrastructure spending, and fears of competition from Chinese lithography. Investors have been shaking off those worries, aided by a series of bullish analyst actions. HSBC, Citi, and UBS recently raised their target prices for Applied Materials to a range of $683 to $705, well above current levels, while the average analyst target stands at $641.61. This significant upside potential provided firm valuation support and reinvigorated buying interest.

Additionally, the company is scheduled to report its fiscal third-quarter earnings on August 13, with consensus expectations for EPS of $3.36. The upcoming report is seen as a near-term catalyst, further fueling the positive momentum.