New York, Jan 15, 2026, 11:55 (ET) — Regular session underway.
- Applied Materials jumped roughly 8% amid a late-morning surge in chip-tool stocks
- TSMC’s boosted capital spending outlook for 2026 raises hopes for stronger equipment demand
- Barclays upgrades AMAT as investors gear up for the upcoming earnings call window
Applied Materials (AMAT.O) jumped 7.8% to $325.41 in late-morning trading Thursday, riding a wave of gains among chip equipment stocks following encouraging factory spending data. Lam Research gained 5.9%, KLA surged 9.0%, and U.S.-listed shares of Taiwan Semiconductor Manufacturing rose 6.9%.
TSMC’s announcement to boost 2026 capital spending to $52 billion-$56 billion sparked the move, well above analysts’ $46 billion forecast, according to a Visible Alpha poll. “The market has underestimated again how large is the demand for AI, and the implementation is going faster than everybody expected,” said Han Dieperink, chief investment officer at Aureus, which owns shares in ASML, a major chip equipment supplier set to report earnings on Jan. 28. 1
TSMC’s budget serves as a key indicator for the industry, showing how quickly foundries — the contract chipmakers — and memory makers intend to expand capacity. For equipment suppliers like Applied, a larger capital expenditure budget typically translates into increased demand for the tools needed to construct and upgrade semiconductor fabs.
Barclays raised its rating on Applied Materials to “overweight” from “underweight” on Thursday, arguing that worries over China exposure and competition are already priced in. The firm highlighted growing foundry and DRAM spending—dynamic random access memory, a key chip for servers—as a stronger backdrop. Still, Barclays flagged uncertainty around the timing and scale of AI infrastructure deployments. 2
Stifel’s Brian Chin bumped his price target on Applied to $340 from $250 and maintained a “buy” rating, pointing to bullish “field checks.” He now predicts wafer fab equipment (WFE) spending — chip-plant tool demand — will rise 10% to 15% in calendar 2026, up from his earlier 7% to 8% estimate. 3
Applied’s jump echoed a wider chip rally in U.S. stocks Thursday, as investors returned to semiconductors following a two-day dip amid the ramp-up in earnings reports. 4
The rally faces a cloud from policy risks for U.S. toolmakers. Applied warned that broader U.S. export restrictions could slash roughly $600 million from its fiscal 2026 revenue. Stricter licensing rules also threaten to delay shipments to customers in China. 5
Investors are set to focus on Applied’s update regarding orders and demand by region. The firm’s fiscal 2026 calendar pins its first-quarter earnings call for Feb. 12, following the quarter’s close on Jan. 25. 6
