Applied Materials Shares Fall 4% After Warning of China Export Impact Despite Q4 Beat

Core Insights - Applied Materials Inc. shares fell over 4% in premarket trading due to a forecasted decline in chipmaking equipment spending in China, attributed to tightened U.S. export restrictions [1] Financial Performance - For the fourth quarter, Applied Materials reported adjusted earnings of $2.17 per share on revenue of $6.8 billion, exceeding analyst estimates of $2.11 and $6.68 billion [4] - The company guided for first-quarter adjusted earnings of $2.18 per share on revenue of $6.85 billion at the midpoint, which is above consensus expectations of $2.15 and $6.80 billion [4] Market Impact - Approximately $110 million worth of products were not shipped during the fiscal fourth quarter due to trade restrictions, which were later suspended following a meeting between U.S. President Donald Trump and Chinese President Xi Jinping [2] - Expanded U.S. curbs on the export of advanced chip equipment to China are expected to reduce fiscal 2026 revenue by around $600 million [3] - Despite these challenges, rising business investments in artificial intelligence are anticipated to drive stronger demand for semiconductor equipment in the second half of next year [3]