Applied Materials Inc. (AMAT) shares climbed about 3% in Tuesday's premarket session, joining a broader rally in semiconductor equipment stocks as the overall market showed strength. Nasdaq futures were up 0.21%, and S&P 500 futures gained 0.15%.

Analysts Raise Price Forecasts

The bullish sentiment got a boost from analysts. On Monday, Cantor Fitzgerald analyst C.J. Muse raised his price forecast on Applied Materials to $850 from $650, reiterating an Overweight rating. Muse said the firm continues to favor Applied Materials, alongside Lam Research Corp. (LRCX) and KLA Corp. (KLAC), though he expects ASML Holding (ASML) to deliver the strongest earnings upside and potentially outperform after a period of relative underperformance.

Separately, KeyBanc analyst Steve Barger maintained an Overweight rating on Applied Materials and increased his price forecast to $750 from $550.

Applied Materials Technical Picture Remains Bullish

The stock continues to trade well above its key moving averages, reflecting a strong long-term uptrend. Shares are 28.6% above the 20-day simple moving average of $559.03 and 116.5% above the 200-day simple moving average of $332.01. The 20-day average remains above the 50-day average, while the golden cross formed in July 2025 continues to support the longer-term bullish trend.

Momentum, however, is becoming stretched. The relative strength index stands at 70.17, a level that typically signals overbought conditions and raises the possibility of short-term consolidation or profit-taking. The prior 52-week high near $708.99 now serves as an important breakout level. The 20-day moving average around $559.03 is the nearest key support.

Earnings And Analyst Outlook

Applied Materials is expected to report quarterly results on Aug. 13, 2026. Wall Street expects earnings of $3.38 per share, up from $2.48 a year earlier, on revenue of $9 billion compared with $7.3 billion in the prior-year period. The stock trades at about 65.3 times earnings, reflecting a premium valuation.

Analysts maintain an overall Buy rating with an average price forecast of $592.67. Recent rating actions include Overweight ratings from Cantor Fitzgerald (price target raised to $850 on June 29), KeyBanc (raised to $750 on June 29), and Wells Fargo (raised to $740 on June 26).

Applied Materials ETF Exposure

Applied Materials remains a significant holding in several exchange-traded funds, including the iShares Semiconductor ETF (SOXX), where it accounts for 4.81% of assets; the Parnassus Core Select ETF (PRCS) at 9.70%; and the Brookstone Growth Stock ETF (BAMG) at 6.27%. Large fund inflows or outflows could influence trading activity in the stock.

AMAT Stock Price Activity: Applied Materials shares were up 3.06% at $715.87 during premarket trading on Tuesday, according to market data.