NEW YORK, January 3, 2026, 11:00 ET — Market closed
Applied Materials, Inc. (AMAT) shares rose 4.6% on Friday to close at $268.87, after trading between $260.00 and $271.21.
The move matters because Applied sells the tools used to build semiconductor wafers — the thin silicon discs chips are made on — making its stock a read-through on factory spending. Chip-equipment names can amplify shifts in sentiment because orders tend to track multi-quarter budget cycles.
That sensitivity is in focus at the start of the year as investors reassess how much to pay for tech and “AI trade” exposure. Rate expectations can reprice the group quickly, even without company-specific headlines.
U.S. stocks ended the first session of 2026 mostly higher, and chip shares led, with the Philadelphia Semiconductor Index — a widely watched gauge of chip stocks — up 4%, Reuters reported. Charles Schwab derivatives strategist Joe Mazzola called it a “buy the dip, sell the rip” market — shorthand for buying pullbacks and selling into rebounds. 1
Applied snapped a two-session losing streak and closed about 2.6% below its 52-week high of $276.10 set on Dec. 10, MarketWatch data showed. Trading volume was 7.5 million shares, slightly above the stock’s 50-day average. 2
Other chip-tool makers moved in sympathy. Lam Research climbed 8.1% and KLA rose 4.9%, while the iShares Semiconductor ETF added 4.2% and the VanEck Semiconductor ETF gained 3.7%.
Sentiment also got a lift from ASML, which jumped 8.8% after Aletheia Capital upgraded the shares twice and raised its price target, Investors.com reported. 3
Attention now turns to macro data that can reset rate bets. The U.S. jobs report due Jan. 9 and the consumer price index scheduled for Jan. 13 headline the near-term calendar, Reuters said, as fourth-quarter earnings season begins to build. 4
Before Monday’s open, traders will be watching whether Friday’s chip rally extends or fades. Semiconductor equipment shares often track momentum in the broader chip complex, but reversals can be sharp when rates move against growth stocks.
For Applied, investors typically focus on order trends in leading-edge logic and memory tools, and on how much spending shifts toward advanced packaging — the technologies that stack and connect chips for high-performance computing. Updates on backlog and customer timing tend to drive the stock more than quarter-to-quarter noise.
Applied Materials is expected to report results on Feb. 12, according to Nasdaq’s earnings calendar, putting added weight on guidance for fiscal 2026. 5
China exposure remains another swing factor. Applied said in October that broader U.S. export restrictions would reduce its fiscal 2026 revenue by about $600 million, a reminder that policy shifts can move chip-tool valuations even when demand holds up elsewhere. 6
With markets closed for the weekend, AMAT’s next test comes with Monday’s cash open and a data-heavy January. Whether the stock can turn Friday’s surge into a sustained break higher will likely hinge on rates, risk appetite and fresh signals on chip spending.
