Applied Materials Shares Dip on US-China Export Curbs, Semiconductor Sector Feels Pressure

Applied Materials' shares slid as much as 4% in pre-market trading after the US tightened export restrictions targeting China's semiconductor industry. The Biden administration's latest measures aim to curb Beijing's access to advanced chipmaking technology, directly impacting equipment suppliers like Applied Materials.

The stock briefly recovered to November 13 closing levels, but volatility persists as markets digest the long-term implications. China accounts for nearly 30% of global semiconductor equipment purchases, making these restrictions particularly consequential for industry revenue streams.

Applied Materials anticipates $600 million in lost revenue through 2026 due to the restrictions. While the company recently secured $2.35 billion in senior notes to bolster liquidity, the Chinese market slowdown presents ongoing challenges. Other semiconductor equipment manufacturers face similar headwinds as geopolitical tensions reshape global supply chains.