New York, Jan 10, 2026, 05:30 EST — The market has closed.
- Shares of Applied Materials jumped 6.9% Friday, boosting its chip-equipment rivals.
- Goldman Sachs and Mizuho boosted their price targets, pointing to strong demand in crucial chipmaking processes.
- Investors are eyeing the U.S. CPI report on Jan. 13 and Taiwan Semiconductor’s earnings on Jan. 15, with Applied’s results set for February.
Applied Materials (AMAT.O) jumped 6.9% on Friday, closing at $301.18 following a new wave of bullish price-target upgrades from Wall Street analysts. The chip-equipment maker’s shares hit a high of $302.70 and dipped to a low of $280 during the session.
The notes come at a sensitive time for the group: investors are wrestling with whether chipmakers will maintain heavy spending into 2026 after last year’s surge in anything connected to data centers. Applied, which sells equipment for chip manufacturing, often sees its order trends lead the broader semiconductor cycle.
The timing explains why even subtle tone changes can swiftly sway the stock, absent fresh company news. After Friday’s swing, the $300 mark is within reach, and a slight uptick in inflation or yields could put it to the test.
Goldman Sachs analyst James Schneider lifted his price target on Applied from $250 to $310, maintaining a Buy rating, The Fly reports. He noted that “tight DRAM and NAND markets” could keep equipment orders strong through 2026 and 2027. For context, DRAM is a memory chip found in PCs and servers, while NAND refers to flash storage used in devices and data centers. TipRanks
Mizuho’s Vijay Rakesh raised his price target to $275 from $245 and reaffirmed an Outperform rating in his 2026 outlook, The Fly reported. He highlighted “attractive valuations” in the semiconductor capital equipment sector but noted the setup is less robust compared to last year. TipRanks
Cantor Fitzgerald bumped its price target to $425 from $350, maintaining its Overweight rating, Dow Jones reported Thursday.
The surge wasn’t limited to one stock. Lam Research (LRCX.O) jumped 8.6%, and KLA (KLAC.O) rose 5.6% on Friday. The iShares Semiconductor ETF (SOXX.O) climbed 2.9%. U.S. equities moved higher after a weaker December jobs report revived hopes for rate cuts in 2026—supporting pricey growth stocks.
A recent filing revealed Applied executive Raja Prabu G. gifted 45 shares in late November. The Form 4 also detailed his direct ownership of 169,333 shares, plus 337,924 shares held via a living trust.
It’s not a one-way street, though. Chip-equipment manufacturers still face sudden changes in China demand and the risk of U.S. export restrictions ramping up. Applied Materials has already flagged a potential $600 million revenue loss for fiscal 2026 linked to broader chip export controls.
Tuesday at 8:30 a.m. ET brings the U.S. consumer price index for December, a key data point for markets. Then on Thursday, Taiwan Semiconductor Manufacturing reports its fourth-quarter earnings, which could shift expectations around chip demand and interest rates. Applied Materials is set to release its earnings on Feb. 12, with investors watching closely for updates on orders, China exposure, and any tweaks to 2026 guidance.
