Applied Materials Suffers Worst Rout Since 2020 on China Woes

Applied Materials Inc. faced its steepest single-day stock decline in five years after issuing a weaker-than-expected sales and profit forecast. The chipmaking equipment giant projected fiscal fourth-quarter revenue of approximately $6.7 billion, falling short of analysts' $7.32 billion average estimate. Adjusted earnings per share guidance of $2.11 also missed the $2.38 consensus.

CEO Gary Dickerson cited mounting challenges in China, where trade tensions have created "a level of uncertainty." The company reported softening demand from Chinese customers and delays in export license approvals for technology shipments. Several major clients are postponing equipment purchases amid the geopolitical standoff.

The Santa Clara-based firm's struggles highlight how US-China trade frictions continue disrupting semiconductor supply chains. As the largest American producer of chip fabrication tools, Applied Materials serves as a bellwether for broader industry health.