Applied Materials' stock surged 5.00% in pre-market trading on Tuesday, marking a significant recovery for the semiconductor equipment maker.
The rebound comes after the stock declined 3.82% in the previous session due to profit-taking pressure and the lingering impact of noted short-seller Michael Burry's bearish positioning across the AI supply chain. This pullback followed a nearly 9% surge earlier in the week driven by target price upgrades from major banks including Goldman Sachs, Morgan Stanley, Mizuho, and Stifel, all raising their targets to approximately $650, alongside CEO Gary Dickerson's comments on strong long-term visibility into semiconductor equipment demand extending beyond 2027.
The broader semiconductor equipment sector is staging a collective recovery in pre-market trading, with peers including Lam Research, KLA, and Teradyne also posting gains as the market recalibrates following the recent volatility.