Applied Materials Suffers Worst Rout Since 2020

Applied Materials Inc. posted its steepest stock decline in five years after issuing a disappointing sales and profit forecast, reigniting concerns that U.S.–China trade tensions are weighing on demand, Dina Bass and Brody Ford reported for Bloomberg News.

Demand from Chinese customers has slowed and approvals for technology exports to China face delays. (Photo: Applied Materials)

The company projected fiscal fourth-quarter revenue of about $6.7 billion, below analysts’ average estimate of $7.32 billion.

Profit will be roughly $2.11 a share, excluding some items, compared with a projection of $2.38. CEO Gary Dickerson said demand from Chinese customers has slowed and approvals for technology exports to China face delays.

Some large customers are also postponing purchases amid prolonged tariff negotiations.

The outlook sent Applied Materials shares down 14% on Friday—their biggest drop since March 2020. The stock had been up 16% this year before the report.