New York, Jan 21, 2026, 11:25 EST — Regular session
- Applied Materials shares climbed 1.7%, reaching $323.62 by late morning.
- The chip toolmaker followed a wider rebound after investors absorbed policy headlines.
- Traders are eyeing chip-sector earnings, with Applied scheduled to report on Feb. 12.
Applied Materials, Inc. shares climbed 1.7% to $323.62 in late morning trading Wednesday, buoyed by a modest bounce in U.S. stocks and strength in chip equipment stocks. “That’s a sigh of relief for markets,” said Art Hogan, chief market strategist at B Riley Wealth, following President Donald Trump’s announcement that he would not pursue force to acquire Greenland. 1
Applied supplies key wafer fabrication equipment—the machinery chipmakers rely on to produce semiconductors. Its stock typically reacts sharply to changes in spending forecasts.
This is crucial as investors sift through order trends amid the jumble of policy signals. Earnings season is picking up speed in the chip sector, with upcoming reports poised to reveal if capital spending commitments remain intact.
Needham’s Charles Shi bumped his price target on Applied from $260 to $390, maintaining a Strong Buy rating. He cited a “broad-based demand improvement” in the last 90 days. The firm also flagged a positive outlook for “semicap” — semiconductor capital equipment — expecting several catalysts from fourth-quarter results across the sector. 2
Applied dropped 2.68% Tuesday, ending a two-day rally amid a broader market decline. Trading volume exceeded the 50-day average, according to MarketWatch data. 3
On Wednesday, peers all swung the same way: Lam Research climbed roughly 2%, KLA added around 2%, and ASML’s U.S.-listed shares also gained about 2%. Investors usually see this group as a unified bet on the next phase of fab spending.
Intel’s quarterly report is set for release after markets close on Thursday. The results will serve as a key indicator for the chip sector and could sway supplier sentiment. Ryuta Makino, an analyst at Intel investor Gabelli Funds, noted, “It’s the most optimistic people have felt … in a long time.” 4
Risks remain for toolmakers. Applied warned that wider U.S. export restrictions could slash roughly $600 million from its fiscal 2026 revenue. Any additional restrictions might also pressure demand and margins. 5
Applied is set to release its earnings on Feb. 12, per Nasdaq’s calendar. Investors will be keen to hear updates on orders and any changes in exposure to China. 6
Traders are zeroed in on chip earnings coming out over the next two sessions, keeping a close eye on any policy headlines that might shake the tape before Applied’s report lands.
