Applied Materials shares surge 6.17% after hours on analyst upgrades and bullish sentiment around AI-driven semiconductor demand.

Applied Materials surged 6.17% in after-hours trading following a cluster of analyst upgrades and renewed focus on its critical role in AI-driven semiconductor supply chains. B. Riley raised its price target to $305 (from $270), while Mizuho increased its target to $245, signaling improved upside potential. Analyst commentary emphasized AMAT’s essential position in supplying equipment for AI chip manufacturing, reinforcing structural growth narratives tied to global semiconductor and AI capacity expansion. Immediate buy-side interest from the upgrade activity, coupled with features highlighting the company’s durable revenue exposure to AI-driven capital expenditure cycles, drove the rally. Neutral and negative sentiments, including cautionary notes on execution risks and prior declines, were outweighed by the bullish analyst momentum and strategic positioning in high-growth sectors.