New York, Feb 5, 2026, 19:29 EST — After-hours
- Applied Materials shares ended Thursday roughly 2.1% higher, closing at $303.99.
- Citi raised its price target to $400, citing stronger signs of chipmaker spending.
- Traders are gearing up for next week’s earnings reports alongside a delayed batch of U.S. macro data.
Applied Materials (AMAT.O) shares ended Thursday up roughly 2.1%, closing at $303.99, clawing back some losses from earlier in the week as chip stocks searched for stability.
The move is significant now as investors juggle two conflicting narratives: surging investment fueled by artificial intelligence and weak spots in consumer electronics. Applied’s quarterly report next week will offer one of the clearer insights into wafer fabrication equipment — the pricey machinery essential for chip manufacturing.
Citi analyst Atif Malik bumped his price target for Applied Materials to $400 from $250, maintaining a “buy” rating. He cited upbeat spending revisions among leading foundry and memory chipmakers. TipRanks
Taiwan added a fresh boost as TradingView reported Winbond Electronics spent T$7.45 billion (roughly $235 million) on machinery and equipment from Applied Materials South Eastasia.
The stock showed unusual jitters for a chip name. Shares dropped 6.6% on Wednesday, then clawed back some ground on Thursday.
Broader markets offered no relief. U.S. stocks fell sharply Thursday, dragged down by heavy selling in major tech names amid renewed worries over the costs tied to AI-driven capital expenditures. “This is a difficult environment for risk assets,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, in comments to Reuters. Reuters
Signs on semiconductor demand are diverging. Qualcomm and Arm flagged memory chip shortages that are crimping smartphone output. Qualcomm CEO Cristiano Amon called it “an industry issue on memory allocations.” Reuters
Other chip toolmakers showed mixed results but held fairly steady, as Lam Research closed up.
Applied, headquartered in Santa Clara, California, supplies equipment for crucial stages in chip production and operates a sizable service arm supporting customers’ fabs. Investors closely track its orders and guidance as a barometer for chipmakers’ capital expenditures, or “capex,” the funds poured into new factories and machinery.
That said, the outlook is a double-edged sword. Any sign of slowing customer spending, extended delivery schedules, or weaker demand beyond AI could sour sentiment fast. The company has also flagged that stricter U.S. export restrictions might pressure China-related tool orders.
The macro calendar is scrambled as well. MarketWatch noted the U.S. jobs report has been delayed to Feb. 11, with the CPI report now set for Feb. 13 due to the government shutdown. This postponement leaves investors uncertain about rate moves until mid-month.
Applied Materials is set to release its fiscal first-quarter results and host a conference call on Feb. 12 at 4:30 p.m. ET. Investors will be digging into guidance for 2026 spending and watching closely to see if the company’s recent customer orders are spreading out or remain focused.
