New York, Jan 12, 2026, 10:56 EST — Trading in the regular session.
- Applied Materials shares climbed roughly 1.7% in early trading, defying the weaker market trend
- Susquehanna raised its rating on the chip-equipment maker to Positive and bumped up the price target to $400
- Traders are focused on Tuesday’s U.S. CPI and TSMC’s demand outlook due Thursday
Applied Materials shares climbed Monday following a more optimistic call from Susquehanna. The firm upgraded the chip-equipment maker to positive from neutral, citing an anticipated surge in factory spending across the industry.
The call came as U.S. stocks wavered amid renewed concerns over the Federal Reserve and policy uncertainty, a combination that has rattled growth stocks throughout the year.
In this sort of market, investors look for clear signals — and with chip tools, that usually means watching if customers continue ordering equipment for new and expanding fabs, despite uneven end-demand.
Applied Materials gained 1.7%, rising to $306.35 by mid-morning in New York, following a Friday close of $301.18. Roughly 1.9 million shares changed hands.
Susquehanna analyst Mehdi Hosseini bumped the stock rating to “Positive” from “Neutral” and hiked his price target sharply, from $180 to $400, based on recent “channel checks” suggesting a pickup in semiconductor capital spending.
Hosseini highlighted wafer fab equipment, or WFE — the gear used to manufacture chips — noting the supply chain is gearing up for about $120 billion in WFE spending. He added that the longer-term demand could climb “well above” $150 billion. He described WFE trends as “remain strong” and also raised his outlook on Advanced Energy, another chip plant supplier.
Other chip equipment stocks showed a mixed bag but mostly edged higher. Lam Research climbed roughly 1.3%, KLA added 1.1%, and ASML held steady with little movement.
The broader market offered little support. The S&P 500 ETF (SPY) fell roughly 0.1%, the Nasdaq-100 tracker (QQQ) dropped 0.2%, and the VanEck Semiconductor ETF (SMH) edged down slightly.
Applied Materials provides equipment, services, and software crucial for semiconductor manufacturing, with its performance heavily dependent on clients’ capital expenditures and how fully their factories are running.
Applied Materials is set to release its earnings on Feb. 12, Nasdaq reports.
The downside is clear: if chipmakers pull back on orders or if export restrictions tighten further on sales to China, tool demand could plunge quickly, dragging guidance down with it.
Traders are zeroing in on upcoming macro data and earnings from key chipmakers. The U.S. consumer price index lands Tuesday at 8:30 a.m. ET. Then, on Thursday, Jan. 15, Taiwan Semiconductor will host its quarterly earnings call—often a key signal for the chip sector’s 2026 spending outlook.
