Can increased BE Semiconductor stake fuel Applied Materials stock?

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Applied Materials gains 4.96% to $415

Highlights

Applied Materials plans to increase its stake in BE Semiconductor Industries from 9% to 20% pending a U.S. antitrust review.
Focus is building ahead of Applied Materials' scheduled fiscal fourth-quarter and full-year 2026 earnings release on November 12.
Applied Materials stock shows short- and medium-term bullish structure with strong buying pressure, expected to consolidate in the $402.40 to $426.74 range.

Strategic stake boost in BESI drives sector optimism ahead of earnings

Applied Materials has announced plans to increase its ownership in BE Semiconductor Industries from approximately 9% to 20%, pending a U.S. antitrust review, according to Marketscreener. This move is expected to enhance Applied Materials' strategic presence in the advanced semiconductor equipment market and fuel investor optimism around future growth opportunities. Additionally, focus is building ahead of the company’s scheduled fiscal fourth-quarter and full-year 2026 earnings release and webcast on November 12, as reported by Kalkinemedia, which may prompt further positioning as investors await concrete performance updates.

Bullish bias develops as price tops key averages amid overbought signals

On the technical front, AMAT/USD is trading above the MA-20 ($389.52) and MA-50 ($397.22) on the hourly chart, while remaining below the MA-200 ($442.93). The Ichimoku Kijun at $389.67 provides immediate support. Momentum signals are mixed: MACD is neutral, ADX signals a Buy, and RSI registers at 68.38, suggesting the presence of bullish momentum. Meanwhile, Stoch RSI, CCI, and Bull/Bear Power all indicate overbought conditions and buyer dominance. The Awesome Oscillator further confirms ongoing buying pressure.

Range-bound consolidation likely as breakout and support risks diverge

In the coming sessions, the anticipated price range for AMAT is between $402.40 and $426.74. There is a 59% probability of further gains, with a lower likelihood of downward movement in the short term. The baseline scenario calls for price consolidation within the current range. Upside momentum could accelerate on a breakout above resistance, while a failure to hold support at $389.67 may trigger a move toward the lower end of the projected band.

Anton Kharitonov, Traders Union expert, notes that Applied Materials' planned stake increase in BE Semiconductor Industries has improved sentiment but leaves risks tied to antitrust review. The analyst sees price momentum holding as long as support at $389.67 is maintained, with mixed technical signals warranting caution. He remains watchful ahead of the upcoming earnings release, keeping a defensive stance. "Base case remains for consolidation between $402.40 and $426.74 — if support is lost, I expect a move to the lower band."

Earlier, analysts noted that Applied Materials faced persistent selling pressure and was expected to remain rangebound amid technical and sentiment challenges. The current advance above key moving averages, together with a pending strategic investment, marks a shift toward a more bullish technical setup, making upside follow-through beyond recent highs the key scenario to monitor in the near term.

Source of Data: AMAT Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.