NEW YORK, Jan 21, 2026, 18:54 EST — After-hours
- Applied Materials climbed 2.2% to $325.24, recovering some of Tuesday’s losses
- Wall Street rallied once Trump announced he would scrap the proposed tariffs linked to the Greenland discussions
- Needham raised its price target again, while a packed chip earnings schedule kept semicap stocks in the spotlight
Applied Materials shares climbed 2.2% to close at $325.24 Wednesday, with volume just over its 50-day average as the chip-equipment maker stayed near a recent peak. After-hours trading, which takes place electronically after 4 p.m., showed little movement in the stock.
The rebound followed a wider relief rally after President Donald Trump announced he would hold off on tariffs set for Feb. 1 against European allies, linked to a framework deal on Greenland. “What is the economic impact is whether we all start imposing tariffs on each other,” said Jason Pride, chief of investment strategy & research at Glenmede. Reuters
Applied Materials dropped 2.7% in the previous session, reflecting the market’s sharp reaction to trade news. The broader takeaway for investors: toolmakers occupy a key spot in the supply chain, where shifts in policy chatter can quickly translate into demand changes.
On Wednesday, peers trended upward. Lam Research climbed roughly 2.6%, KLA edged up about 2.2%, and U.S.-listed ASML shares jumped near 2.7%.
Applied Materials stayed in focus after Needham analyst Charles Shi boosted his price target to $390 from $260, maintaining a Strong Buy rating. He pointed to “broad-based demand improvement over the past 90 days,” according to TipRanks, which referenced TheFly. TipRanks
Intel’s earnings report after Thursday’s close will be the next key test for chip stocks. “It’s the most optimistic, I think, people have felt about the company in a long time,” said Ryuta Makino, an analyst at Intel investor Gabelli Funds. Investors are watching closely for evidence that data-center demand remains strong. Reuters
Applied Materials warned that chipmaking equipment spending in China will likely drop in 2026, hit by tougher U.S. export controls restricting access. Any new limits or cautious buyers could weigh on its order book and outlook.
Applied’s fiscal first quarter wraps up Jan. 25, with the earnings call set for Feb. 12 per the company’s fiscal calendar. Investors will focus on any shifts in memory and logic spending, along with updates on demand from China.
