Applied Materials hits 52-week high as chip sector rallies on Fed rate-cut hopes
Applied Materials saw its stock price jump 7% on Friday, closing at $301.18. The surge came as the company reached a new 52-week high of $302.78, driven by broader optimism in the chip sector after a weaker-than-expected U.S. jobs report raised hopes for Federal Reserve interest rate cuts.
The rally in Applied Materials shares followed a wave of bullish analyst updates. Barclays increased its price target from $350 to $425 while keeping an Overweight rating. Cantor Fitzgerald made a similar move, lifting its target from $350 to $425 and maintaining the same rating.
Investors are now looking ahead to Tuesday’s Consumer Price Index (CPI) data and Applied Materials’ mid-February earnings report. These updates will provide clarity on the company’s spending plans and its exposure to the Chinese market. Despite the positive momentum, challenges remain. Stricter U.S. export controls are expected to weigh on China-related demand, potentially affecting revenue in fiscal 2026.
The stock’s strong performance reflects growing confidence in the chip industry. However, upcoming economic data and earnings reports will be key in determining whether the upward trend continues. Regulatory pressures on China trade could still pose risks to future growth.
