Semi stocks: AMD, AMAT, and ADI

On the back of yesterday's blog post on the bullish breakout and retest pattern for the iShares Semiconductor ETF (SOXX), we highlight the chart setups for Advanced Micro Devices (AMD), Applied Materials (AMAT), and Analog Devices (ADI).

Advanced Micro Devices (AMD) rallied and recently tested its 100% extension target at 259 prior to a dip back to the rising 13-week moving average near 208 and the upper end of a big upside gap near 203. This pullback held above the early October breakout point at 186.65, keeping the breakout from the April 2024-October 2025 big base intact with upside potential to the bullish pattern count at 298. Our bullish confidence on AMD would increase on a move above tactical resistance near 224-226. The 203 to 186 zone remains key support.

This updates our October 23 Straight from the Chart post on AMD.

Chart 1: Advanced Micro Devices (AMD) (top) and relative to the S&P 500 (bottom)

Applied Materials (AMAT) probes to a new high above prior record high from mid 2024 at 255.89. The breakout from a late 2024-late 2025 head and shoulders bottom suggests further upside to 275 (pattern count) and 308 (measured move/100% extension of the late 2022-mid 2024 rally projected from the April 2025 low). The 243-240 area offers tactical risk management support on AMAT.

In addition, we are not ruling out an even bigger base for AMAT.

This post updates our views on AMAT from the August 12 The Stock Pulse.

Chart 2: Applied Materials (AMAT) (top) and relative to the S&P 500 (bottom)

We got a blog question on Analog Devices (ADI). This semiconductor stock is breaking higher from a mid 2024-late 2025 bullish head and shoulders pattern. Sustaining the rally above 258-248 would keep this breakout intact with upside potential to 284 (61.8% extension of the April-August rally projected from the early November low), 322 (100% extension), and 344 (pattern count). Rising 13-, 26-, and 40-week moving averages from 242 to 226 reinforce this bullish pattern.

Chart 3: Analog Devices (ADI) (top) and relative to the S&P 500 (bottom)