New York, Jan 28, 2026, 19:07 ET — After-hours
- AMAT climbed roughly 1.3% to $336.75 in late trading, having peaked at $349.19 earlier.
- Mizuho lifted its rating on Applied Materials to Outperform from Neutral and bumped up the price target to $370 from $275.
- Investors are eyeing if the chipmaker factory spending rebound will extend into early 2026 and show up in Applied’s results on Feb. 12.
Applied Materials shares gained roughly 1.3%, closing at $336.75 in after-hours trading Wednesday, maintaining much of their intraday jump following an upgrade from Mizuho.
The call is crucial since Applied provides the equipment chipmakers rely on to construct and upgrade factories. Orders tend to shift quickly when customers either ease or tighten their capital spending.
The news arrives as investors hunt for signs that the chip equipment cycle is picking up. Semiconductor stocks gained earlier, buoyed by strong reports from ASML and SK Hynix. These moves support the idea that investment in advanced chip technology remains on track.
Mizuho’s Vijay Rakesh raised Applied to Outperform from Neutral, boosting his price target to $370 from $275. He described the change in wafer fab equipment spending forecasts as a “significant acceleration” compared to previous estimates. Source
Wafer fab equipment, or WFE, refers to the machines chipmakers use to operate and grow semiconductor plants. Mizuho forecasts global WFE spending to increase by 13% in 2026 and 12% in 2027. This growth is driven by stronger investment in foundry, logic, and DRAM memory chips. The report also notes China remains a drag, though its impact is lessening as spending outside China picks up.
Applied’s shares surged sharply over two days, climbing roughly 4% on Tuesday and tacking on another 1% Wednesday, totaling just over a 5% rise in that span.
The action was volatile. AMAT climbed to a peak of $349.19 before slipping lower, market data showed.
Applied also submitted its 2026 proxy statement ahead of the March 12 annual meeting, seeking shareholder approval on director elections, an advisory vote on executive compensation, and auditor ratification.
That “cycle is improving” trade, though, can reverse fast. China still throws a curveball for U.S. chip toolmakers. If trade restrictions tighten again or major foundries and memory makers cut back on capital spending, equipment orders would probably drop almost immediately.
Wednesday’s macro scene was a mixed bag. The Fed held rates unchanged, while traders zeroed in on Big Tech earnings for clues about 2026 capital spending. “Tonight’s a big night for AI,” said Deepwater Asset Management managing partner Gene Munster in a CNBC interview, as cited by Investopedia. Source
Applied’s next major event is its fiscal first-quarter report on Feb. 12. Investors are expected to zero in on the company’s guidance and any clues on customer spending, rather than the quarter’s raw numbers.
Thursday’s session will test if the upgrade-driven boost can sustain momentum. Traders will also keep an eye on whether the broader chip rally stays intact as additional tech earnings and spending announcements come in.
