NEW YORK, Jan 23, 2026, 09:51 EST — Regular session
- Shares of Applied Materials dropped roughly 2.2% in early trade, mirroring a broader retreat in chip equipment stocks
- Deutsche Bank raised AMAT to Buy, boosting its price target to $390
- The company scheduled its fiscal first-quarter results and earnings call for Feb. 12
Applied Materials shares dropped roughly 2.2% on Friday, dragging down an already volatile morning for semiconductor equipment stocks despite a new bullish note from Deutsche Bank. By 9:35 a.m. ET, the stock had slipped to $311.79, following Thursday’s close at $318.79.
This matters as investors scramble to see if chip plant spending will actually pick up in orders this quarter or slip further down the road. Applied, a key player in wafer fab equipment—the gear used to create chips on silicon wafers—often sets the pace for the sector, so its earnings report could shape the group’s outlook.
Deutsche Bank’s Melissa Weathers bumped Applied Materials up to Buy from Hold, lifting her price target to $390 from $275. She told clients the outlook for wafer fab equipment is “much more constructive” through 2026 and 2027, adding that Applied’s “discount valuation to peers” seems “overdone.” 1
The upgrade hit a shaky market. U.S. stocks started off mostly down after Intel dropped on weak guidance, with traders flagging a nervous vibe around earnings forecasts in general. “Guidance now is more critical than ever,” said Peter Cardillo, chief market economist at Spartan Capital Securities. 2
Applied, headquartered in Santa Clara, California, announced Thursday it will release its fiscal first-quarter 2026 results on Feb. 12, followed by a conference call at 4:30 p.m. ET. This earnings date now stands as the next major event for the stock after a recent surge in chip equipment shares. 3
Investors are focused on one thing: whether demand for tools in cutting-edge logic, advanced packaging, and memory stays strong, and if service revenue remains steady despite any dips in new system orders. Even a whisper about lead times or pricing can send these stocks moving sharply.
Applied Materials forecast robust quarterly revenue in its November earnings update, driven by AI chip demand. However, the company warned that spending on chipmaking equipment in China will decline in 2026 due to tighter US export controls restricting market access. CFO Brice Hill noted that customers expect wafer fab equipment spending to “likely accelerate beginning in the second half of calendar 2026.” 4
But there’s a risk. If memory prices fall or major chipmakers hold back on capex after a surge of AI-driven orders, equipment bookings could plunge—and margins slip along with them. Any new export rule tweaks would only deepen the uncertainty.
Through Friday, eyes remain on chip stocks to see if they can steady after Intel’s decline. Investors are also gauging if risk appetite endures ahead of next week’s macro data. Applied’s shares have been moving sharply, reflecting tech sentiment shifts.
Applied investors have their eyes on Feb. 12 for results, guidance, and any clues from management about wafer fab spending through the latter half of 2026.
