NEW YORK, Jan 13, 2026, 6:58 PM EST — Trading after the bell
- AMAT slipped 0.8% to end at $304.87 and held steady in after-hours trading.
- Susquehanna raised Applied Materials to Positive, boosting its price target to $400.
- Bernstein lifted its price target to $325 but maintained a Market Perform rating.
Applied Materials shares dropped 0.8% Tuesday, closing at $304.87 after reaching $310.61 during the day. In after-hours trading, the stock barely moved despite new bullish ratings from Wall Street.
Timing is key. Applied has turned into a high-beta bet on the next phase of semiconductor factory investments, with its stock reacting sharply to even minor shifts in sentiment about tool orders and customer budgets.
Susquehanna’s Mehdi Hosseini upgraded Applied to “Positive” from “Neutral,” boosting his price target sharply to $400 from $180, according to TheFly. Hosseini cited “recent channel checks” indicating the industry is gearing up for roughly $120 billion in wafer fab equipment (WFE) spending — that’s the chipmaking gear sold by companies like Applied — with potential for even more as the supply chain expands. (TipRanks)
Bernstein bumped up its price target for Applied, moving it from $260 to $325 but maintained a Market Perform rating. The firm cited a bigger growth runway, driven by increasing services revenue and continued capital returns to shareholders. (TipRanks)
Tuesday’s pullback made it clear: investors aren’t buying upgrades as an automatic boost. Some names in the semiconductor equipment sector have surged sharply, prompting traders to take profits swiftly.
Chip equipment makers showed mixed results. Lam Research dropped 2.8%, ASML edged down 0.9%, while KLA managed a 0.9% gain. The broader market was weaker: the S&P 500 slipped 0.2%, and the Dow fell 0.8%. (MarketWatch)
Applied sells deposition and etch equipment crucial to chip manufacturing, alongside a sizable services operation that generates steady income from maintenance and parts. This blend helps buffer the company when clients hold off on building new fabs, yet it still leaves the stock sensitive to shifts in spending moods.
China continues to be the wildcard. Applied Materials cautioned that stricter U.S. export controls might hurt shipments and dampen chip-equipment investment in China come 2026, despite stronger demand from AI-driven memory expansions in other regions. (Reuters)
Investors are closely monitoring whether memory chip manufacturers ramp up spending once more, along with shifts in export controls that might affect the timing and availability of certain tools. A sudden drop in end-demand would likely be reflected swiftly in order activity.
Looking ahead, earnings will be the key trigger. Nasdaq’s calendar shows Applied expects to report near Feb. 12. Investors will hone in on order momentum, China exposure, and how management sees WFE budgets shaping up through 2026. (Nasdaq)
