Applied Materials (AMAT) stock soared 10.95% during intraday trading, extending a sharp recovery that began in the pre-market session. The surge marked a dramatic turnaround for the semiconductor equipment maker after a punishing multi-day selloff that had battered the sector.

The rally was driven by a combination of bargain hunting and a broader sector rebound. The Philadelphia Semiconductor Index had fallen over 20% from its June all-time high, creating a ripe environment for dip buyers. The stock had faced a triple headwind of short-selling pressure from renowned investor Michael Burry, who publicly disclosed short positions and projected approximately 30% downside for AI-related chip stocks, alongside concerns over AI capital expenditure returns and fears of competition from Chinese lithography machines. Peer stocks rallied in tandem, with Lam Research and KLA gaining strongly, providing sector-wide momentum.

Adding fuel to the rebound, several major Wall Street firms recently raised their price targets on Applied Materials. HSBC, Citi, and UBS lifted their targets to a range of $683 to $705, while the FactSet consensus analyst target stands at $641.61 — implying significant upside from current levels. The company is scheduled to report its fiscal third-quarter results on August 13, with consensus earnings per share expectations of $3.36, further supporting investor optimism.