Applied Materials Shares Plummet 3% After U.S. Export Restriction Rule
Applied Materials' shares nyposted by 3% in after-hours trading following the implementation of a new U.S. news restriction rule. The company anticipates a significant financial impact due to this regulation.
The U.S. Department of Commerce's Bureau of Industry and Security introduced the new rule, which expands the list of companies subject to U.S. export news. This move is expected to cut Applied Materials' revenue by $110 million in the fourth quarter and approximately $600 million in fiscal 2026.
Analysts at KeyBanc Capital have observed that Applied Materials' shares have lagged behind its competitors this year. The primary reason for this underperformance is the company's exposure to the Chinese market, which has been subject to increased scrutiny and restrictions from the U.S.
The new U.S. export news restriction rule has significantly impacted Applied Materials' share price and expected revenue. The company braces for a substantial financial hit, with the full extent of the damage expected to be felt in the coming fiscal year.
