Buyers have returned to defend its previous consolidation zone between $55 and $56.50. Now the stock is pushing higher along with the Philadelphia Semiconductor Index and challenging another key zone: AMAT’s November 25 and 26 high of $58.42. Momentum buyers may look to add if the stock clears this level.
Finally, a fundamental note on semiconductors in general: While orders slowed for most of 2019, data from the Semiconductor Industry Association showed them turning positive again in September and October. Furthermore, economic growth estimates have ratcheted up lately – especially after last week’s non-farm payrolls report. That typically favors chips because they’re cyclical.
On top of that, 5G networking is expected to drive growth for several years into the future.