Applied Materials' stock was soaring intraday, recording a gain of 7.61% on Tuesday.

The surge was primarily driven by a broad rally across semiconductor stocks, ignited by peer Micron Technology's strong quarterly earnings report and optimistic revenue guidance. Micron's shares surged significantly following its report, triggering positive sentiment and buying activity across the chip sector, benefiting equipment makers like Applied Materials.

Institutional optimism regarding long-term, AI-driven demand for semiconductor manufacturing equipment provided further support. Analysts have cited artificial intelligence and high-bandwidth memory (HBM) requirements as key drivers for advanced logic and memory capital expenditure. Reflecting this confidence, several financial institutions have recently raised their price targets for Applied Materials and upgraded their forecasts for the global wafer fabrication equipment market.