New York, January 23, 2026, 12:16 PM (EST) — Regular session
Shares of Applied Materials (AMAT.O) climbed roughly 1% to $321.96 by midday Friday following an upgrade from Deutsche Bank. The stock fluctuated between $311.25 and $323.62, with around 2.6 million shares changing hands.
The call matters as investors remain divided over how long chipmakers will continue heavy investment in new factories and upgrades following a surge in orders linked to advanced chips and AI data centers. Typically, tool stocks are the first to react when the cycle shifts.
Applied finds itself right in the thick of that debate. The company sells deposition and other process tools essential for chip manufacturing, and its order updates are often taken as a crude barometer for factory spending.
Deutsche Bank’s Melissa Weathers upgraded the stock from Hold to Buy, boosting her price target to $390 from $275. She pointed to a “much more constructive” wafer fab equipment (WFE) outlook for 2026 and 2027. Her estimates for those years now sit roughly 10% above Street consensus, with “upside risk” factored in. 1
Weathers called Applied’s valuation gap against other chip-tool makers “overdone,” suggesting it may narrow. On Friday, shares hovered near a 52-week high, according to Investing.com. 2
Applied announced Thursday it plans to release fiscal first-quarter results on Feb. 12, followed by a conference call at 4:30 p.m. ET. Investors will be focused on any shift in commentary around orders, margins, and customer spending outlooks. 3
The stock closed Thursday roughly 2% lower at $318.79, despite gains in the wider market. 4
Friday saw mixed moves among chip-equipment stocks: Lam Research dropped nearly 1%, ASML edged down about 0.8%, while KLA managed a modest gain of roughly 0.4%.
The trade still harbors concerns. A dip in chipmaker capital spending would swiftly dent tool demand, while stricter U.S. export controls risk cutting sales to China; Applied has flagged that broader curbs might trim around $600 million from its fiscal 2026 revenue. 5
Feb. 12 is the next key date, as Applied Materials reports earnings and refreshes its guidance. Investors want to see if WFE demand can stay strong through 2026 and whether China’s impact is still a headwind or beginning to level off. 6
