NEW YORK, Jan 26, 2026, 20:40 EST — Market closed.
- Applied Materials slipped 0.9%, with late trading showing the stock around $319.
- With the Federal Reserve decision looming, investors are also gearing up for a flood of megacap earnings reports this week.
- Traders are eyeing Applied’s Feb. 12 earnings for clues on chipmakers’ demand.
Applied Materials shares dropped 0.9% Monday and traded near $319.46 in after-hours, marking a modest dip for the chip-equipment maker ahead of a busy week in the markets.
Timing is crucial. Investors are focused on Wednesday’s Fed decision and earnings reports from several “Magnificent Seven” companies for clues on spending and risk appetite. “It seems like we’re having an expansion in corporate profits and an expansion in the economy,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Reuters
In chip tools, the tape showed mixed results. Lam Research climbed 2.3%, while Applied dipped roughly 0.9%. Traders attributed the divergence to positioning moves following a solid rally in the sector.
The rally boils down to one thing: chipmakers’ capital expenditure. Taiwan Semiconductor raised its 2026 capex guidance this month to $52 billion-$56 billion. Investors took that as a clear boost for demand in the tools sector.
Applied supplies wafer fab equipment — those costly machines crucial for chip manufacturing and packaging — and often moves in line with the industry’s investment trends. The industry group SEMI projects global chipmaking equipment sales will climb roughly 9% to $126 billion by 2026.
Applied is set to release its fiscal first-quarter 2026 results on Feb. 12, followed by an earnings call the same day.
The downside risks remain. U.S. export curbs and licensing rules have pushed chip-tool makers to revise their China demand forecasts. Applied Materials had already flagged about a $600 million revenue hit in fiscal 2026 due to these expanded U.S. restrictions.
Traders will be dissecting Fed signals for clues on rates and valuation, particularly in long-duration tech, ahead of that. Another pause is broadly anticipated, with all eyes on how Chair Jerome Powell outlines the future trajectory.
For Applied, the bigger macro picture intersects with a crucial issue: will Big Tech continue ramping up AI investments? And can that spending translate into a rise in wafer starts and fresh tool orders?
Wednesday’s Fed decision is the next big trigger, with megacap earnings rolling in throughout the week. Then all eyes turn to Applied’s report on Feb. 12, which will zero in on bookings, margins, and management’s outlook for chipmaker spending in 2026.
