Applied Materials' stock fell 5.31% during intraday trading on Friday, as the semiconductor equipment maker experienced a significant pullback following recent gains.

The decline comes after the stock surged over 5% earlier in the week on the back of strong quarterly earnings and concentrated analyst upgrades. Mizuho raised its target price to $540 while maintaining an Outperform rating, and Bernstein lifted global wafer fabrication equipment spending forecasts to $148 billion, identifying Applied Materials as the top pick among major equipment makers. However, the rapid short-term appreciation triggered concentrated profit-taking, with elevated sector crowding accelerating the correction.

The semiconductor equipment sector declined broadly for the second consecutive session, with other major players including ASML, Lam Research, KLA-Tencor, Teradyne, and AXT Inc all experiencing significant losses during the same period.