Applied Materials Stock Rebounds 5.5% as Chip Sector Recovers

Applied Materials shares rose 5.5% in morning trading today, rebounding from Thursday's sharp decline that left the semiconductor maker deeply oversold. The drop was triggered by Democratic election wins, raising fears of stricter AI regulation and export controls. No new company-specific negative catalysts emerged overnight, leading investors to view the session as a chance to recover losses from what analysts call an overreaction to political risk. The recovery is broad across the chip sector, with AMD, Nvidia, Intel, Micron, and Broadcom all posting significant gains. A Form 4 insider filing had no material impact on the stock's direction. Morgan Stanley's recent price target cut to $538 from $563 is overshadowed by sector momentum. Investors are positioning ahead of the Q4 fiscal 2026 earnings report on November 12, with revenue guidance around $10.25 billion. A jobs report showing 165,000 new positions stabilized markets, while the PHLX Semiconductor Index bounced 4% after Thursday's 12% collapse, its steepest one-day drop since 2020.