Applied Materials' stock price slumped by double digits after the semiconductor equipment maker reported a project revenue decline amid tariff worries in China.

Analysts wonder if China’s recent “overspending” on chip equipment is coming to a halt — and if the company is losing market share to rivals.

Applied Materials ( NASDAQ: AMAT) provided fourth quarter fiscal 2025 guidance that demonstrated a year-over-year revenue decline of 4.9% and an adjusted earnings per share drop of 9% during its latest financial results on Thursday.

Beijing E-Town Semiconductor Technologies , a semiconductor equipment firm backed by Beijing's government, on Wednesday said it has sued U.S. chip equipment supplier Applied Materials over alleged trade secrets infringement.

Shares of Applied Materials Inc (NASDAQ: AMAT) tanked despite upbeat fiscal Q3 results. BofA downgraded, Goldman Sachs reiterated buy, Needham kept buy.

For the current quarter ending in October, Applied Materials expects its per-share earnings to range from $1.91 to $2.31. The company said it expects revenue in the range of $6.2

Shares of technology companies declined as a tepid outlook from one major chip-equipment manufacturer cast a pall on the semiconductor sub-sector. Shares of Applied Materials plunged after the maker of semiconductor manufacturing equipment forecast growth short of Wall Street expectations.