TSMC Forecasts Strong Q1 Sales and Raises 2026 CapEx to $52B-$56B
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Chipmaker Rally: TSMC's forecast of stronger-than-expected Q1 sales has led to a rally in chipmakers, with KLA Corp rising over 8% and Applied Materials over 7%, reflecting renewed market confidence in AI demand sustainability.
- Strong Economic Signals: US weekly initial jobless claims unexpectedly fell by 9,000 to 198,000, indicating a robust labor market that enhances investor confidence in economic recovery, potentially influencing future monetary policy decisions.
- Easing Geopolitical Risks: President Trump stated that Iran would cease killing protesters, reducing concerns over military intervention and causing WTI crude oil prices to drop over 4%, providing support for equities.
- Optimistic Earnings Outlook: S&P 500 earnings growth is expected to rise by 8.4% in Q4, with a 4.6% increase excluding the Magnificent Seven tech giants, indicating a positive sentiment towards corporate profitability that may drive further stock market gains.
Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMAT is 249.83 USD with a low forecast of 185.00 USD and a high forecast of 300.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 301.890
Low
185.00
Averages
249.83
High
300.00
Current: 301.890
Low
185.00
Averages
249.83
High
300.00
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 in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
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.
