Applied Materials Expects Strong Growth on AI Chip Demand

The news supports the fundamental outlook for AMAT by highlighting expectations of strong growth driven by demand for artificial intelligence chips. The price has risen 3.17% in the last 24 hours and is trading above the SMA50 (366.48), but slightly below the SMA20 (385.74), remaining near a resistance zone in the short term. RSI is neutral around 50 and below the MACD signal line, indicating that momentum has not yet fully strengthened. With the impact of the news, a move toward the SMA20 is possible within 1-3 days; however, volume and MACD recovery should be monitored for confirmation. I avoid excessive optimism, as technical indicators are giving mixed signals.

Applied Materials’ robust growth outlook for AI chip demand may serve as a modest short‑term catalyst for Nvidia (NVDA) within the semiconductor sector. However, NVDA has slipped 5.6% in the past 24 hours, falling to $166. Its Relative Strength Index (RSI) sits at 36.6, indicating a weak zone, while the MACD is trading just below the negative signal line, signalling that momentum is still bearish. The stock is trading below both the 20‑ and 50‑period simple moving averages (SMA20 and SMA50), suggesting that a clear reversal is not yet evident. Although the news may lift sector sentiment, it is unlikely to overturn the current selling pressure on its own; a limited rebound is more probable within a 1‑ to 3‑day window. Consequently, the outlook is slightly bullish but with low conviction.

AMD stock is showing strong momentum with a 15.8% gain in 24 hours and is trading well above its SMA20/SMA50. Applied Materials' strong growth expectations for AI chip demand could also support AMD as a positive signal for the semiconductor sector. However, RSI14 at 70.6 is approaching overbought territory, and there is a risk of short-term profit-taking. MACD is above the signal line and positive, confirming the upward trend. Overall, while the news flow and technical picture are positive, cautious optimism is appropriate due to overbought conditions.

Applied Materials' expectation of strong growth driven by demand for artificial intelligence chips serves as a positive signal for the semiconductor equipment sector and could provide indirect support to industry leaders such as ASML. However, ASML shares are currently below the SMA20 and trading below the MACD signal line; the RSI at 45 places it in a neutral-to-weak zone. This outlook suggests that the news impact may remain limited and the existing weak technical structure could dominate in the short term. Nevertheless, sector optimism could give the stock a slight upward momentum in the short term. Confidence should be kept at a moderate level; the fact that the news relates to the sector rather than directly to ASML increases uncertainty.