Applied Materials Surges After Q1 Earnings: Why The Stock Chart Is Bullish

Applied Materials Inc AMAT shares were trading over 11% higher premarket Friday, according to Benzinga Pro.

Source: Benzinga Pro

On Thursday, the company reported better-than-expected first-quarter financial results and issued second-quarter guidance.

Read about Q1 earnings: Applied Materials Stock Climbs After Q1 Beat, Strong Guidance

Applied Materials stock is up over 57% in the last year. The stock also touched a new all-time-high of $189.47 during the trading day Thursday. Let’s look into the technical positioning of Applied Material stock, given this background.

Applied Materials Outperforms, Hits New 52-Week Highs

An Applied Materials stock analysis reveals a positive outlook in both the short and long term, indicating a favorable trend for the stock.

The stock has outperformed the broad market by over two times over the last year. The gains achieved during this period are well-distributed, contributing to the stock’s positive momentum. As part of the semiconductors and semiconductor equipment industry, Applied Materials outperformed 84% of its industry peers.

Notably, the stock is trading at a new 52-week high of $189.47, aligning with the broader market’s trend, as reflected by the S&P 500’s near-new highs.

Applied Materials Stock Technical Setup

The eight-day simple moving average, 20-day simple moving average, 50-day simple moving average and 200-day simple moving average all suggest a "Buy" signal as the stock price ($187.66) exceeds these averages.

Increased trading volume in the last few days supports the upward movement, a positive indicator for a strong trend. With an average daily volume of 5,999,610 traded shares, Applied Materials stock also exhibits good liquidity.

Considering the recent strong price increases, the RSI at 73.08, has moved into overbought territory. Potential investors may want to exercise caution and wait for a consolidation or pullback before considering entry points.

Read Next: How To Earn $500 A Month From Applied Materials Stock Ahead Of Q1 Earnings Report

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