New York, Jan 17, 2026, 15:07 EST — The market has closed.
- Applied Materials ended Friday 2.5% higher at $327.01, buoyed by a chip-equipment rally sparked by TSMC’s expanded spending plan.
- The U.S. markets will be closed Monday in observance of Martin Luther King Jr. Day; trading resumes Tuesday.
- Attention now turns to whether the gains stick into Tuesday, as earnings season looms as the next hurdle.
Shares of Applied Materials ended Friday 2.5% higher, closing at $327.01 after fluctuating between $320.29 and $330.14. The U.S. markets will be closed Monday for Martin Luther King Jr. Day, so the next chance to trade will come Tuesday. 1
Customer spending is in focus. Taiwan Semiconductor announced a hefty $52 billion to $56 billion capital expenditure plan for 2026, targeting factories and equipment—well above analysts’ $46 billion forecast, Reuters reported. This signals strong tool demand across the industry. “The market has underestimated again how large is the demand for AI,” said Han Dieperink, chief investment officer at Aureus, which holds ASML shares. 2
Applied moved sharply on Thursday, climbing nearly 8%. Lam Research wasn’t far behind, up around 7%, while KLA gained about 6%. The boost came after TSMC’s outlook hit the tape, according to an Investing.com report.
The rally showed some staying power despite signs of fatigue in the broader market. The S&P 500 edged down 0.06% on Friday, and the Dow slipped 0.17%. Applied stood out with a 2.49% gain, according to MarketWatch market data. 3
TSMC’s latest figures set the stage for its bold outlook. Fourth-quarter profit surged 35% to hit a new high, and the company projects nearly a 30% revenue boost in 2026, measured in U.S. dollars, fueled by strong demand tied to AI capacity. Yet CEO C.C. Wei warned about the risks, saying TSMC is “very nervous” about misjudging capital expenditure. Ben Barringer of Quilter Cheviot noted that with chipmakers battling it out, TSMC stands out as the main beneficiary. 4
Applied Materials faces a bigger issue than just a single headline: the timing of orders. Investors want to catch any changes in customer spending on cutting-edge logic and memory, as well as advanced packaging — the process linking chips that’s becoming crucial for high-end AI gear.
Earnings are the next key milestone for the company. Analysts are forecasting Applied to report adjusted earnings of $2.21 per share in the upcoming quarter, marking a 7.1% drop year-over-year, according to Barchart. 5
But the flip side is clear. Applied has flagged that wider U.S. export controls might slash fiscal 2026 revenue by roughly $600 million, highlighting how policy uncertainty and China ties remain a drag on the sector despite solid demand. 6
Traders are eyeing Feb. 12 next, the day Applied’s investor site shows a scheduled earnings call for its fiscal first quarter. 7
