Applied Materials (AMAT) Stock: Surges 7% on Analyst Upgrades and Chip Rally

TLDR

• Applied Materials (AMAT) stock jumped nearly 7% on Friday, closing at $301.18 and hitting a fresh 52-week high of $302.78
• Multiple analysts raised price targets, with Cantor Fitzgerald lifting theirs from $350 to $425 while maintaining an overweight rating
• The chip sector rally was fueled by a weaker U.S. jobs report that increased expectations for Federal Reserve rate cuts
• The company faces headwinds from stricter U.S. export controls expected to hurt China-related demand and impact fiscal 2026 revenue
• Investors await Tuesday’s CPI data and Applied’s mid-February earnings report for guidance on spending outlook and China exposure

Applied Materials stock rocketed higher on Friday, riding a wave of optimism across semiconductor equipment makers.

Applied Materials, Inc., AMAT

The stock closed at $301.18, marking a gain of nearly 7%. After-hours trading kept that momentum going with a 6.9% bump.

The move pushed AMAT to a new 52-week high of $302.78 during Friday’s session. That’s a long way from the low of $123.74 the stock touched earlier in the year.

The Philadelphia Semiconductor Index surged 2.7% to a fresh record, lifting the entire sector. Lam Research, a peer in the equipment space, jumped 8.7% after Mizuho raised its price target.

A softer-than-expected U.S. jobs report sparked the rally. Traders interpreted the data as keeping Federal Reserve rate cuts on the table, which tends to benefit high-growth tech stocks.

Analysts Boost Targets

Wall Street didn’t sit on the sidelines. Cantor Fitzgerald raised its price target on Applied Materials from $350 to $425.

The firm kept its overweight rating, suggesting it expects the stock to beat the broader market. Goldman Sachs and Mizuho also lifted their targets on Friday, according to MarketScreener.

The upgrades reflect growing confidence in a rebound for semiconductor equipment demand. Expectations for renewed U.S. spending on advanced chip manufacturing are building.

Applied Materials now carries a market cap around $240 billion. The stock has gained 9.59% year-to-date.

A regulatory filing on Thursday showed Raja Prabu G., president of Applied’s Semiconductor Products Group, received 45 shares as a gift in November. The Form 4 also detailed his current holdings and unvested awards.

What’s Next for AMAT

Tuesday brings a key test. The Labor Department releases December’s Consumer Price Index at 8:30 a.m. ET.

That inflation reading could shift rate expectations and move chip stocks. The sector trades at higher multiples and stays sensitive to interest rate changes.

Applied Materials isn’t without challenges. The company has warned that stricter U.S. export controls will likely hurt demand tied to China.

Those restrictions are expected to cut into fiscal 2026 revenue. Any new limits or drop in wafer fab investment could pressure shares.

Traders are looking ahead to Applied’s next earnings report, expected around February 12. The quarterly update typically focuses on chipmaker spending outlooks, China exposure, and margin forecasts.

Friday’s rally came as average trading volume for AMAT sits at 7.3 million shares. The technical sentiment signal points to buy, reflecting the current momentum behind the stock.

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