Applied Materials Warns of China Slowdown Despite Strong Earnings
Applied Materials shares tumbled over 4% in premarket trading as geopolitical tensions overshadowed a quarterly earnings beat. The semiconductor equipment Maker flagged a $600 million revenue hit from expanded U.S. export controls on chip technology to China, with $110 million in Q4 shipments already blocked by restrictions.
While AI-driven demand is expected to boost equipment sales in late 2026, immediate concerns center on China's projected spending decline. The Trump-Xi meeting temporarily suspended some export barriers, but structural trade frictions remain. Applied Materials' predicament highlights the semiconductor industry's delicate balance between technological leadership and geopolitical realities.