Applied Materials (AMAT) shares surged 5.21% in the post-market session on Wednesday, staging a sharp recovery after a multi-day sell-off that had battered the semiconductor equipment sector.

The rebound came as the broader chip equipment industry staged a collective rally, with peer Lam Research surging 6.87% and KLA gaining 0.83%. The Philadelphia Semiconductor Index had previously fallen over 20% from its June all-time high, driven by a triple headwind of short-selling pressure from Michael Burry, concerns over AI capital expenditure returns, and fears of Chinese lithography competition. The overnight recovery suggests that bargain hunters stepped in after the steep declines.

Adding fuel to the recovery, several major Wall Street firms recently raised their price targets on Applied Materials. HSBC, Citi, and UBS lifted their targets to a range of $683 to $705, while the FactSet consensus analyst target stands at $641.61, implying significant upside from current levels. The company is scheduled to report its fiscal third-quarter results on August 13, with consensus earnings per share expectations of $3.36.