New York, Jan 8, 2026, 15:37 EST — Regular session
- Applied Materials shares fell about 4% in afternoon trade, extending a pullback from this week’s highs.
- Cantor Fitzgerald lifted its price target to $425 and kept an “overweight” rating.
- Traders are looking to Friday’s U.S. payrolls report and Applied’s next quarterly results in February.
Applied Materials shares were down 3.9% at $280.91 in afternoon trading on Thursday, after earlier dipping to $279.43. Cantor Fitzgerald raised its price target on the chip-equipment maker to $425 from $350 and kept an “overweight” rating, meaning it expects the shares to outperform. 1
The slide comes as investors turn more selective on tech and other AI-linked names after big gains. “While AI is still hot, there are going to be winners and losers,” said Art Hogan, chief market strategist at B. Riley Wealth. The Nasdaq was down 0.65% and the S&P 500 was off 0.09% in late trading, with traders focused on Friday’s U.S. nonfarm payrolls report for December. 2
Applied ended Wednesday down 1.29% at $292.20, snapping a three-day winning streak. The stock hit a 52-week high of $298.22 on Tuesday. 3
Other chip-tool makers were also lower: ASML fell about 3.1%, KLA dropped 2.4% and Lam Research slipped 0.5%.
Applied has leaned on demand tied to advanced chips while navigating tighter U.S. export limits to China, one of its biggest end-markets. In November, the company said spending on chipmaking equipment in China would fall in 2026 and forecast first-quarter revenue of $6.85 billion, plus or minus $500 million. 4
But the stock’s run-up toward record territory leaves it exposed to any sign that chipmakers are trimming capital spending, or that export rules pinch harder than expected. In a market that has started to argue over who really earns a return on AI spending, sentiment can turn quickly.
Next up is Applied’s quarterly report, expected on Feb. 12 after the close, when investors will look for new guidance on 2026 spending, China exposure and order trends across memory and logic chips. 5
