US Stocks Rise Slightly, Nasdaq Hits All-Time High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 28 2026
0mins
Source: NASDAQ.COM
- Market Recovery: The S&P 500 index rose by 0.44% and the Nasdaq 100 climbed by 0.62%, indicating a recovery after early losses, reflecting cautious optimism among investors regarding the economic outlook.
- Economic Data Impact: The April core PCE price index increased by 3.3% year-on-year, meeting expectations and indicating persistent inflationary pressures, while April new home sales fell by 6.2% to 622,000, highlighting weakness in the housing market.
- Fed Policy Expectations: Concerns from Fed officials about inflation are intensifying, potentially leading to future rate hikes, with the market pricing in only a 3% chance of a rate cut at the June FOMC meeting, reflecting investor caution regarding monetary policy.
- Corporate Earnings Performance: So far, 83% of the 479 S&P 500 companies have exceeded earnings expectations, with Q1 earnings projected to rise by 12% year-on-year, demonstrating resilience in corporate profitability despite a slowdown in the tech sector.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 640.180
Low
190.00
Averages
288.05
High
425.00
Current: 640.180
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investors Don't Need to Pick AI Chip Winners to Profit
- Investment Strategy Shift: Philippe Laffont, founder of Coatue Management, asserts that investors can gain exposure to AI through semiconductor manufacturers and equipment suppliers, holding significant stakes in Taiwan Semiconductor, Lam Research, and Applied Materials, demonstrating a deep understanding of the industry.
- Surge in Equipment Demand: As tech companies race to build data centers and develop more powerful AI processors, the demand for equipment used to manufacture these chips has skyrocketed, with Laffont noting that suppliers do not need to precisely predict which chip will win, thereby reducing investment risk.
- Market Dynamics Analysis: Laffont mentioned that despite Nvidia's stock recently falling about 12%, it is still considered a
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Market Update: Semiconductor and AI Stocks Decline Amid Concerns
- Nasdaq Futures Decline: Nasdaq futures are down about 2.5% this morning, heavily influenced by a 10% plunge in South Korea's stock market, with semiconductor and AI stocks experiencing the largest declines, reflecting growing concerns about the returns from AI spending.
- Bank of America Raises Chip Price Targets: Bank of America raised its price target for hold-rated Arm from $335 to $460, and Intel's target from $135 to $160, indicating increased analyst confidence in the semiconductor sector.
- SpaceX Coverage Initiated: Susquehanna initiated coverage of SpaceX with a hold rating and a $170 price target, noting that the company's markets are relatively unproven and recommending investors wait for a better entry point.
- Nike Downgraded: Evercore ISI downgraded Nike from buy to hold, expressing concerns that management may once again cut numbers, forcing Wall Street to reset its expectations ahead of the upcoming earnings report.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
Wells Fargo Optimistic on Chip Equipment Makers' Outlook
- Positive Market Outlook: Wells Fargo anticipates continued strong performance for semiconductor equipment manufacturers in Q2 2026, particularly for ASML, raising its 2027 Wafer Fab Equipment market estimate from $180 billion to $190 billion, reflecting confidence in industry recovery.
- Accelerating Demand: Analysts noted that despite recent stock fluctuations, investors remain optimistic about semiconductor capital equipment stocks, with ASML's year-to-date performance (+80%) seen as a potential catch-up trade compared to the peer average (+127%).
- Forecast Updates: Wells Fargo also increased its 2028 Wafer Fab Equipment market estimate from $191 billion to $216 billion, indicating strong expectations for advanced foundry and DRAM demand, with Lam Research and KLA likely to raise their 2026 outlook as well.
- Confidence in Technical Capacity: Analysts emphasized that ASML is expected to reiterate its low-NA tool capacity for 2027, projecting support for at least 60 tools in 2026 and at least 80 in 2027, showcasing the company's robust capability to meet market demand.
See More
Mixed U.S. Stock Performance with Tech Stocks Leading Declines
- Tech Stock Decline: Alphabet's stock fell over 6%, leading the tech sector down after the announcement of Google DeepMind VP Jumper's departure to Anthropic PBC, raising concerns about the company's future and potentially impacting investor confidence.
- Market Volatility Factors: Stock index futures weakened overnight due to a more than 2% rise in oil prices following Iran's threat to close the Strait of Hormuz, although they recovered later due to reported progress in peace talks with the U.S., highlighting geopolitical influences on market dynamics.
- Bond Yield Changes: The 10-year U.S. Treasury yield rose to 4.503%, a one-week high, driven by Fed rate hike expectations and an upcoming $211 billion Treasury auction, which may exert pressure on the bond market.
- Overseas Market Performance: European and Asian stock markets saw gains, with the 10-year German bund yield falling to 2.946%, reflecting optimism about global economic recovery, which could provide support for the U.S. market.
See More
U.S. Stocks Edge Up, Nasdaq Hits 2.5-Week High
- Market Recovery: The Nasdaq 100 index rose by 0.50% to reach a 2.5-week high as the markets reopened after the holiday, driven by strong performances from chipmakers and AI infrastructure stocks, indicating a rebound in investor confidence towards tech equities.
- Oil Price Volatility: Although crude oil prices initially surged over 2% due to Iran's threat to close the Strait of Hormuz, they retreated after reports of 'major progress' in peace talks with the U.S., highlighting the short-term impact of geopolitical risks on market volatility and stock index futures.
- UK Political Shift: Following Prime Minister Keir Starmer's resignation, the market is keenly awaiting Andy Burnham's choice for Chancellor of the Exchequer, with concerns that an unqualified new chancellor could raise issues regarding deficits and borrowing, putting pressure on the British pound and reflecting the impact of political uncertainty on market sentiment.
- Rate Hike Expectations: The market is pricing in a 36% chance of a 25 basis point rate hike by the Federal Reserve at its meeting on July 28-29, while the European Central Bank has only a 10% chance of a rate hike at its next policy meeting, indicating differing expectations for future monetary policy that could influence investor asset allocation strategies.
See More
Investors Don't Need to Pick AI Chip Winners to Profit
- Investment Strategy Shift: Philippe Laffont, founder of Coatue Management, asserts that investors can gain exposure to AI through semiconductor manufacturers and equipment suppliers, holding significant stakes in Taiwan Semiconductor, Lam Research, and Applied Materials, demonstrating a deep understanding of the industry.
- Surge in Equipment Demand: As tech companies race to build data centers and develop more powerful AI processors, the demand for equipment used to manufacture these chips has skyrocketed, with Laffont noting that suppliers do not need to precisely predict which chip will win, thereby reducing investment risk.
- Market Dynamics Analysis: Laffont mentioned that despite Nvidia's stock recently falling about 12%, it is still considered a
See More
Market Update: Semiconductor and AI Stocks Decline Amid Concerns
- Nasdaq Futures Decline: Nasdaq futures are down about 2.5% this morning, heavily influenced by a 10% plunge in South Korea's stock market, with semiconductor and AI stocks experiencing the largest declines, reflecting growing concerns about the returns from AI spending.
- Bank of America Raises Chip Price Targets: Bank of America raised its price target for hold-rated Arm from $335 to $460, and Intel's target from $135 to $160, indicating increased analyst confidence in the semiconductor sector.
- SpaceX Coverage Initiated: Susquehanna initiated coverage of SpaceX with a hold rating and a $170 price target, noting that the company's markets are relatively unproven and recommending investors wait for a better entry point.
- Nike Downgraded: Evercore ISI downgraded Nike from buy to hold, expressing concerns that management may once again cut numbers, forcing Wall Street to reset its expectations ahead of the upcoming earnings report.
See More
Mixed Market Close: Tech Stocks Decline Amid Leadership Changes
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
See More
Wells Fargo Optimistic on Chip Equipment Makers' Outlook
- Positive Market Outlook: Wells Fargo anticipates continued strong performance for semiconductor equipment manufacturers in Q2 2026, particularly for ASML, raising its 2027 Wafer Fab Equipment market estimate from $180 billion to $190 billion, reflecting confidence in industry recovery.
- Accelerating Demand: Analysts noted that despite recent stock fluctuations, investors remain optimistic about semiconductor capital equipment stocks, with ASML's year-to-date performance (+80%) seen as a potential catch-up trade compared to the peer average (+127%).
- Forecast Updates: Wells Fargo also increased its 2028 Wafer Fab Equipment market estimate from $191 billion to $216 billion, indicating strong expectations for advanced foundry and DRAM demand, with Lam Research and KLA likely to raise their 2026 outlook as well.
- Confidence in Technical Capacity: Analysts emphasized that ASML is expected to reiterate its low-NA tool capacity for 2027, projecting support for at least 60 tools in 2026 and at least 80 in 2027, showcasing the company's robust capability to meet market demand.
See More
Mixed U.S. Stock Performance with Tech Stocks Leading Declines
- Tech Stock Decline: Alphabet's stock fell over 6%, leading the tech sector down after the announcement of Google DeepMind VP Jumper's departure to Anthropic PBC, raising concerns about the company's future and potentially impacting investor confidence.
- Market Volatility Factors: Stock index futures weakened overnight due to a more than 2% rise in oil prices following Iran's threat to close the Strait of Hormuz, although they recovered later due to reported progress in peace talks with the U.S., highlighting geopolitical influences on market dynamics.
- Bond Yield Changes: The 10-year U.S. Treasury yield rose to 4.503%, a one-week high, driven by Fed rate hike expectations and an upcoming $211 billion Treasury auction, which may exert pressure on the bond market.
- Overseas Market Performance: European and Asian stock markets saw gains, with the 10-year German bund yield falling to 2.946%, reflecting optimism about global economic recovery, which could provide support for the U.S. market.
See More
U.S. Stocks Edge Up, Nasdaq Hits 2.5-Week High
- Market Recovery: The Nasdaq 100 index rose by 0.50% to reach a 2.5-week high as the markets reopened after the holiday, driven by strong performances from chipmakers and AI infrastructure stocks, indicating a rebound in investor confidence towards tech equities.
- Oil Price Volatility: Although crude oil prices initially surged over 2% due to Iran's threat to close the Strait of Hormuz, they retreated after reports of 'major progress' in peace talks with the U.S., highlighting the short-term impact of geopolitical risks on market volatility and stock index futures.
- UK Political Shift: Following Prime Minister Keir Starmer's resignation, the market is keenly awaiting Andy Burnham's choice for Chancellor of the Exchequer, with concerns that an unqualified new chancellor could raise issues regarding deficits and borrowing, putting pressure on the British pound and reflecting the impact of political uncertainty on market sentiment.
- Rate Hike Expectations: The market is pricing in a 36% chance of a 25 basis point rate hike by the Federal Reserve at its meeting on July 28-29, while the European Central Bank has only a 10% chance of a rate hike at its next policy meeting, indicating differing expectations for future monetary policy that could influence investor asset allocation strategies.
See More
