New York, Jan 14, 2026, 11:55 ET — Regular session
- Shares slipped roughly 2% by midday, retreating following a series of upbeat research notes
- Stifel raised its price target to $340, with BofA and Bernstein following suit this week by upping their targets as well
- Attention now turns to Feb. 12 earnings, key for insights on 2026 chip-tool investment and China-related risks
Applied Materials (AMAT.O) slipped 1.8%, hitting $299.25 by midday Wednesday, despite Stifel lifting its price target from $250 to $340. Stifel analyst Brian Chin cited “bullish” field checks in recent weeks and now projects wafer fab equipment (WFE) spending to rise 10%-15% in calendar 2026. 1
The stock slid along with the sector following a sharp rally that had turned Applied into a favored proxy for the next wave of chipmaking investment.
This is significant now as analysts boost their 2026 spending forecasts while the stock hits fresh highs. The situation could flip fast if customers cut back on tool orders or delay projects by a quarter or two.
Bank of America bumped its price target to $350 from $300, maintaining a buy rating. The upgrade reflects a more optimistic multi-year demand forecast and improved clarity on customer trends as the recovery gains momentum. 2
Bernstein raised its price target to $325 from $260 but stuck with a market-perform rating. The firm pointed to “secular” WFE growth, highlighting factors like SAM expansion, a stronger services narrative, and capital returns. 3
Susquehanna’s Mehdi Hosseini raised Applied to Positive from Neutral late Monday, boosting his price target sharply to $400 from $180. His channel checks indicate the industry is prepping for about $120 billion in yearly WFE spending, with WFE trends described as “remain strong.” 4
The stock surged to an all-time peak Monday following the Susquehanna upgrade, according to a Reuters report. 5
Lam Research, KLA and ASML also slipped on Wednesday, dragging the VanEck Semiconductor ETF down roughly 1.6% by midday.
Applied expects demand to pick up in late 2026 despite stricter U.S. export restrictions. “Our customers are indicating to us that wafer fab equipment spending is likely to accelerate beginning in the second half of calendar 2026,” Chief Financial Officer Brice Hill said on the company’s last quarterly call. 6
Policy remains the key wildcard. Applied Materials flagged that wider U.S. export restrictions might slash around $600 million from its fiscal 2026 revenue. More clampdowns could weigh on forecasts once again. 7
Timing is another risk. Tool spending can swing sharply depending on memory prices, customer timelines, and the pace of major new fabs. A rebound that comes later than expected would challenge a stock already valued for smoother gains.
The next major trigger will be earnings. Applied is set to release its report on Feb. 12, after the U.S. market closes, per Yahoo Finance’s earnings calendar. Investors will focus on order trends, guidance for 2026 spending, and any fresh details regarding exposure to China. 8
