Applied Materials, one of the world's largest suppliers of semiconductor manufacturing equipment, is bracing for a significant financial setback as new US export restrictions tighten the flow of chipmaking tools to China.
Applied Materials Inc (NASDAQ:AMAT, ETR:AP2) shares slipped more than 3% in early trading on Friday after the maker of machinery used to manufacture semiconductors revealed in a regulatory filing that new US export restrictions to China would hurt its revenue. The company expects the decision will result in about $600 million of lost revenue in fiscal 2026, which runs through next October.
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Semiconductor stocks have been impacted this year by evolving U.S. rules governing the sale of chips to China. Applied Materials just called out a fresh set of challenges.
Applied Materials (AMAT) said it expects a $710 million revenue hit from new restrictions on its China exports, pressuring shares of the chip manufacturing equipment maker Friday.
Chip equipment maker Applied Materials forecast a $600 million hit to fiscal 2026 revenue after the U.S. expanded its restricted export list in a blow to sectors such as semiconductors, aircraft and medical equipment.
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