Chip-equipment stocks received a big confidence boost late Tuesday when Intel ( INTC), the world's largest chipmaker, set a capital spending budget far above what most analysts expected. And the gift-giving has only begun, as Samsung, the second-largest chipmaker and the industry's largest spender last year, likely will announce its spending plans on Friday. But analysts say investors shouldn't necessarily mistake the ramp-up from the top two makers as a turnaround in the broader chip industry. Intel's projections were enough to launch the stocks of most chip-equipment makers, with Applied Materials ( AMAT), Novellus Systems ( NVLS), KLA-Tencor ( KLAC) and Lam Research ( LRCX) all advancing. This group of stocks has been pummeled lower since the end of 2003 and was excluded from last year's second-half rally that lifted so many chipmakers to multiyear highs. Investors didn't see the point of wading into the equipment providers if they weren't going to reap the benefits of chipmakers' spending plans. Indeed, most industry analysts haven't predicted much in the way of increased spending. On Monday, the equipment industry's primary trade group forecasted that global equipment spending would fall 5% in 2005 from a year earlier. However, initial reactions seem to indicate a belief that Intel's announcement has thrown off those projections with its new budget, which targeted spending in 2005 between $4.9 billion and $5.3 billion, an increase of up to 39% from 2004. But analysts continue to stick to their weak spending projections for the industry. Samsung is expected to cut its spending from around $4.9 billion in 2004 to roughly $4.5 billion this year. "Intel obviously exceeded expectations, and Samsung is still very healthy, but there's going to be certain chipmakers that are going to have significant declines," said Patrick Ho, a semiconductor and chip-equipment analyst with Moors & Cabot.