Applied Materials (AMAT) - Get Report was up 1.7% in preopen Island trading after Prudential Securities upgraded it and two other chip equipment makers -- KLA-Tencor (KLAC) - Get Report and Teradyne (TER) - Get Report -- to strong buy from accumulate.

KLA-Tencor was up 2.6% preopen. Teradyne had not yet traded preopen.

Prudential cited stabilization in end markets, a trend reversal in revenue and recovery in orders, plus the beginning of a new semiconductor cycle.