AM Shares RallyingChipmaker Applied Materials has been one of the key stocks to benefit from the surge in demand for AI this year. The company recently posted bumper Q4 earnings with both EPS and revenues coming in above target and cited the growth in demand from companies looking to scale up their AI business as a key driver of success. Looking ahead, with AI set to continue to grow in terms of a spending focus for tech business, AM looks poised for further upside in the near-term.China Demand BoostThe rebound in business activity in China on the back of the borders reopening is also a firmly encouraging sign. With plenty of demand set to come from China as the economic recovery continues there, chipmakers such as AM look set to benefit greatly from increased demand from the Chinese semiconductor market.New System UnveiledFurthermore, AM looks to set enjoy a surge in demand on the back of announcing a new chipmaking system which lowers the cost of etching transistors into semiconductors. This allows the company to make high performing transistors at a lower cost for makers of semiconductors, giving it a clear competitive advantage over its rivals.Technical ViewsApplied MaterialsThe rally in AM stock has stalled for now into a test of the 122.68 level. Price has subsequently corrected and is now testing the 111.34 level and bull channel lows. While price holds here, the focus remains on a further push higher within the channel targeting 142.13 longer term.
Source link
