TLDR
- Applied Materials (AMAT) stock climbed 7% Friday to $301.18, reaching a 52-week high of $302.78
- Cantor Fitzgerald raised its price target from $350 to $425 with an overweight rating
- Weak U.S. jobs data boosted rate cut expectations, lifting semiconductor stocks across the board
- Export controls targeting China remain a concern for fiscal 2026 revenue
- Earnings report expected mid-February with focus on spending outlook and margins
Applied Materials stock surged Friday as semiconductor equipment makers caught fire.
AMAT closed at $301.18, up nearly 7%. The gain held in after-hours trading with shares up 6.9%.
The stock hit a 52-week high of $302.78 during Friday’s session. That marks a steep climb from its yearly low of $123.74.
The Philadelphia Semiconductor Index jumped 2.7% to a record high. Lam Research, another equipment maker, soared 8.7% after Mizuho lifted its target.
A weaker jobs report triggered the rally. Markets saw the data as keeping Federal Reserve rate cuts possible, which helps high-growth tech names.
“Investors are getting granular and picking the winners and losers,” said Zachary Hill from Horizon Investments.
Wall Street Raises Price Targets
Cantor Fitzgerald boosted its Applied Materials price target to $425 from $350. The firm maintained its overweight rating, signaling confidence the stock will outperform.
Goldman Sachs and Mizuho also raised their targets Friday. The upgrades reflect growing optimism about semiconductor equipment demand rebounding.
Analysts point to expectations for increased U.S. spending on advanced chip manufacturing. That backdrop is lifting sentiment around Applied Materials despite near-term challenges.
The company now holds a market cap around $240 billion. Year-to-date gains stand at 9.59%.
A Thursday filing showed Raja Prabu G., president of Applied’s Semiconductor Products Group, received 45 shares as a gift in November.
Key Events Ahead
Tuesday’s Consumer Price Index report looms large. The December inflation data drops at 8:30 a.m. ET.
That number could shift rate expectations and move chip stocks. The sector trades at premium valuations and responds quickly to interest rate signals.
Applied Materials faces headwinds from tighter U.S. export controls. The company has warned these restrictions will hurt China-related demand and cut fiscal 2026 revenue.
Any additional export limits or slowdown in wafer fab investment could pressure shares. Traders remain watchful for new policy announcements.
Applied’s next earnings report is expected around February 12. Investors typically focus on chipmaker spending forecasts, China exposure, and margin guidance during these updates.
Average daily volume for AMAT sits at 7.3 million shares. Technical signals currently point to buy as momentum builds behind the stock.
