Applied Materials (Applied Materials (AMAT)) shares climbed nearly 7% on Thursday as investors piled into semiconductor stocks during a broad technology rally. The Nasdaq gained 1.49%, while the S&P 500 rose 0.63%.

Sentiment got an extra boost from fresh comments by CEO Gary Dickerson, who pointed to strong long-term demand driven by artificial intelligence. In an interview with Nikkei Asia, Dickerson said Applied Materials has “tremendous visibility” into customer demand over the next 24 months. He added that chipmakers are providing equipment demand forecasts at least two years in advance, giving the company confidence that the AI-driven semiconductor investment cycle still has years to run.

Applied Materials has also been one of the market’s strongest performers over the past year, with shares up more than 211%.

Technical Picture Remains Bullish

Applied Materials continues to trade above its major moving averages, signaling that the longer-term uptrend remains intact. The stock is trading above its 20-day, 50-day and 200-day simple moving averages. A bullish “golden cross,” formed in July 2025, also remains in place.

The relative strength index (RSI) stands at 54.46. That reading is considered neutral, indicating the stock is not yet in overbought territory. Traders may watch the 20-day moving average near $604.45 as the first support level. On the upside, the 52-week high near $739.67 remains the next major resistance area.

Strong Position In Chip Equipment Market

Applied Materials is the world’s largest maker of semiconductor wafer fabrication equipment. Its products are widely used to manufacture advanced chips. The company has significant exposure to spending by major chipmakers, so investor sentiment often tracks expectations for semiconductor manufacturing investment.

Earnings And Analyst Outlook

Applied Materials is expected to report quarterly results on Aug. 13. Wall Street expects earnings of $3.38 per share on revenue of $9 billion. That compares with earnings of $2.48 per share and revenue of $7.3 billion a year earlier.

The stock carries a consensus Buy rating with an average analyst price forecast of $627.35. Recent analyst actions include:

• Mizuho reiterated Outperform and raised its price forecast to $650 on Thursday.
• Morgan Stanley maintained Equal-Weight and lifted its price forecast to $647 on July 6.
• Susquehanna reiterated Positive and increased its price forecast to $900 on June 30.

Price Action

Applied Materials shares were up 6.77% at $609.12 at the time of publication on Thursday.