New York, Jan 13, 2026, 12:39 (EST) — Regular session underway
Applied Materials shares edged up 0.2% to roughly $308 by midday Tuesday, staying close to the session peak of $310.6 amid a wave of new price-target upgrades. The iShares Semiconductor ETF climbed 1.5%, KLA added 1.7%, while Lam Research dropped 0.5%, and ASML remained mostly flat.
The broker’s note carries weight since Applied Materials serves as a key indicator for capital spending on chipmaking equipment. Investors are eager to pinpoint the next phase of the spending cycle. With a strong rally projected through 2026, even minor shifts in this outlook can trigger swift moves of large sums.
Susquehanna’s Mehdi Hosseini boosted Applied Materials to Positive from Neutral late Monday, more than doubling his price target to $400 from $180, according to TheFly. His channel checks suggest wafer fab equipment spending is near $120 billion — that’s the gear used to produce chips — and he described WFE fundamentals as “remain strong.” TipRanks
Bank of America lifted its price target to $350 from $300 on Tuesday, maintaining a Buy rating. The firm pointed to a stronger multi-year demand outlook and “greater customer diversification,” among other positives, TheFly reported. It also highlighted the possibility of increased free cash flow during the next economic upswing, a key metric tracking cash remaining after expenses and investments. TipRanks
Bernstein raised its price target to $325 from $260 but maintained a Market Perform rating, according to TheFly. The firm cited secular growth in wafer fab equipment and emphasized Applied’s services segment and capital returns as major catalysts.
Shares rose 2.0% Monday, closing at $307.24 and hitting a fresh 52-week peak, according to MarketWatch data. Applied found itself amid a packed trade, with semiconductors continuing to serve as a go-to growth proxy.
Applied Materials provides manufacturing gear and related services to chipmakers, so its order patterns offer insight into factory expansions.
Traders are closely tracking if the upbeat analyst notes translate into stronger backlog, fresh orders, and a confident management outlook on 2026 spending. Much hinges on whether memory and logic customers continue to write checks.
Policy risks continue to cloud the group’s outlook. U.S. export restrictions linked to China have already influenced chip-tool demand, and stricter measures could derail equipment orders—just as analysts grow more confident about a spending uptick.
Applied Materials is set to release its earnings after the market closes on Feb. 12, per Yahoo Finance’s earnings calendar. Investors are focused on any guidance regarding wafer fab equipment demand, along with updates on China exposure and profit margins.
