New York, Jan 15, 2026, 05:35 EST — Premarket
- Applied Materials shares were up about 6.6% in premarket trading after Wednesday’s slide.
- The move followed upbeat signals from Taiwan Semiconductor on AI-driven demand and spending.
- Fresh Wall Street calls on Applied Materials added fuel ahead of its Feb. 12 results.
Applied Materials, Inc shares jumped 6.6% to $321.69 in premarket trading on Thursday, after the chip equipment maker ended Wednesday down nearly 1% at $301.89.
The move tracked a broader bid in semiconductor supply names after Taiwan Semiconductor Manufacturing Co posted a forecast-smashing jump in quarterly profit and laid out a higher capital spending plan. Chief Executive C.C. Wei struck a cautious tone even as TSMC talked up AI demand, saying, “We’re also very nervous about it.” Investing.com
RBC Capital also helped set the tone on Applied Materials, initiating coverage with an “Outperform” rating and a $385 price target, according to a note published early Thursday. Analyst Srini Pajjuri pointed to expected strength in DRAM spending and what he called secular shifts in chipmaking that can drive new tool demand. Investing.com India
Stifel, in a separate note on Wednesday, raised its price target on Applied Materials to $340 from $250 and kept a “Buy” rating, adding to a run of higher targets across the chip-tool group. Investing.com UK
In Europe, ASML’s shares hit a fresh record and pushed the company past the $500 billion market-cap mark, a move Reuters linked to the spillover from TSMC’s results. In U.S. premarket trading, Lam Research and KLA were also among the stronger chip-equipment gainers, according to a list of top movers.
For Applied Materials, the setup is familiar: when big chipmakers lift capital spending (capex), investors often rotate into the companies that sell the tools used to build and upgrade fabs.
Those tools fall under “wafer fabrication equipment,” or WFE — the machinery that deposits, etches and inspects the layers that make up advanced chips. WFE spending can swing fast when customers pause orders or rush to add capacity.
But the trade cuts both ways. If AI demand cools or customers rein in spending after a burst of orders, equipment names can give back gains quickly, and any additional tightening in China-related export rules remains a wildcard for U.S. toolmakers. Applied Materials said in November it expected chip-equipment spending in China to fall in 2026 as tighter U.S. export controls limited market access.
Beyond Thursday’s open, investors will look for more read-throughs on spending from equipment peers, including KLA’s earnings report expected on Jan. 22.
Applied Materials’ next major catalyst is its quarterly results, expected on Feb. 12 after the close. Traders will be listening for comments on order momentum, memory demand and any shifts in customer spending plans following TSMC’s updated capex outlook.
Related articles: NASDAQ:AMAT
