NEW YORK, January 4, 2026, 18:02 ET — Market closed
- Applied Materials shares rose 4.6% on Friday to close at $268.87, ending near recent highs.
- Chip stocks led a broader bounce to open 2026, with the Philadelphia Semiconductor Index up 4%. Reuters
- Next catalysts: ISM data due Jan. 5 and Jan. 7, U.S. jobs data on Jan. 9, and Applied’s expected earnings on Feb. 12. Institute for Supply Management
Applied Materials (AMAT.O) shares closed up 4.6% on Friday at $268.87, after swinging between $260 and $271.21 in the session.
The move matters now because semiconductor equipment makers sit early in the chip supply chain. When chipmakers lift factory spending, orders for deposition and etch tools usually follow, and the stocks often move first.
With AMAT back near recent highs after a choppy end to December, investors are looking for proof that AI-linked capital spending can stay strong even as rate expectations and trade policy remain in flux.
U.S. stocks snapped a four-session losing streak on the first trading day of 2026, powered by chip names. Joe Mazzola, head of trading and derivatives strategist at Charles Schwab, described a “buy the dip, sell the rip” mindset, while warning investors are paying closer attention to valuations in some AI trades. Reuters
Equipment peers also ripped higher. ASML rose 8.7% and Lam Research gained 8.1% on Friday, while KLA added 4.9%, according to market data; ASML’s jump followed a double-upgrade by Aletheia Capital that set a Street-high target price. Investors
Applied ended the session about 2.6% below its Dec. 10 52-week high of $276.10, with volume slightly above its 50-day average, MarketWatch data showed. Traders will watch whether the stock can clear that high, which often acts as a near-term resistance level. Marketwatch
Applied is one of the largest suppliers of chipmaking tools, selling equipment used to deposit, etch and inspect layers on silicon wafers. The company’s outlook is closely tied to spending on leading-edge logic and memory, including high-bandwidth memory — a stacked form of DRAM used in AI accelerators.
Macro data could set the tone when markets reopen on Monday. The Institute for Supply Management is scheduled to release its Manufacturing PMI on Jan. 5 and its Services PMI on Jan. 7, and the U.S. Labor Department’s monthly jobs report is due Jan. 9 at 8:30 a.m. ET. Institute for Supply Management
Those reports matter for AMAT because rate expectations feed directly into risk appetite for high-multiple semiconductor stocks. Softer data can bolster bets on easier monetary policy, while hotter numbers can pressure growth names by pushing yields higher.
But the setup cuts both ways. A shift toward higher rates, a pullback in chipmakers’ capital spending, or renewed restrictions on exports tied to China demand would likely hit equipment makers first, and AMAT has limited room for disappointment near its highs.
The next company-specific catalyst is earnings. Applied is expected to report fiscal first-quarter results on Feb. 12, and investors will be looking for guidance on foundry and memory demand, plus any update on margins and order visibility. Zacks
