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These chip stocks are falling in the face of a new China setback

1. Applied Materials predicts $600M revenue hit in fiscal 2026. 2. New U.S. restrictions will limit sales to certain Chinese customers. 3. AMAT's shares fell by about 2% in premarket trading. 4. Analysts indicate the impact is manageable at around 2% for AMAT. 5. AMAT is up 37% this year, outperforming the S&P 500.

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FAQ

Why Bearish?

The $600M revenue loss forecast reflects significant restrictions in sales potential. Historical context shows similar regulations have affected peer companies negatively.

How important is it?

The revenue forecast directly ties to business operations in a crucial market, indicating potential difficulty ahead.

Why Short Term?

The immediate regulatory effects will be felt in the ongoing fiscal year, especially impacting the final quarter of fiscal 2025.

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