Applied Materials shares are testing new highs. Why are AMAT shares at highs?
What Is Driving Applied Materials’ Stock Surge?Keybanc raised its price target on Applied Materials to $750 from $550 while keeping an Overweight rating, helping reinforce the bullish tone around semiconductor equipment names. Additionally, Cantor Fitzgerald maintained Applied Materials with an Overweight rating and raised the price target from $650 to $850.Applied Materials is also riding a tape where semis are rebounding after last week’s broader market sell-off. That index-level push matters for AMAT because systematic buyers often add exposure to semiconductor equipment when the tech-heavy Nasdaq-100 is leading.Critical Technical Levels for AMAT StockThe stock is extended above its trend gauges, trading 25% above the 20-day SMA ($559.28) and 110.6% above the 200-day SMA ($332.03), which is classic late-stage momentum behavior rather than an early breakout. The 20-day SMA remains above the 50-day SMA and the 50-day SMA is above the 200-day SMA (a golden cross that occurred in July 2025), keeping the longer-term trend firmly pointed up.RSI is the cleanest momentum lens here: at 70.55, it’s in overbought territory, which tells you the move is getting stretched and more prone to sharp pullbacks or sideways digestion even if the primary trend stays bullish. A practical way to frame risk is that the stock is pressing toward its 52-week high ($669.22), so follow-through matters—otherwise, "overbought" can quickly turn into a fast mean-reversion move.
