CNBC Television·2025-10-03 16:25US Export Regulations Impact - Applied Materials anticipates a $710 million revenue reduction due to new US export regulations [2] - The new rule targets sales to Chinese entities, even those majority-owned by sanctioned companies, closing a previous workaround [3] - Applied Materials' stock is down about 2% following the disclosure [2] - Lam Research likely faces similar exposure, though specific figures are yet to be disclosed [3] - Bernstein views the impact on Applied Materials as "annoying but incremental," representing less than 2% of Q4 revenue and fiscal 2026 revenue [4][5] - Applied Materials trades at approximately a 25% valuation discount to Lam Research and KLA due to market share concerns [4] Nvidia's UAE Deal Stalled - A multi-billion dollar deal to supply Nvidia AI chips to the UAE, signed in May, is stalled after nearly 5 months [6] - The UAE's promised investments in the US have not yet materialized [6] - Commerce Secretary is reportedly pressuring the UAE to finalize US investments before authorizing chip delivery [7] - The delay was largely expected, resulting in minimal negative reaction in Nvidia's stock price [7] - Sovereign AI demand is generally not factored into current earnings estimates [7] Market Outlook - Morgan Stanley suggests the memory capex recovery and continued spending by Taiwan Semiconductor are key factors driving equipment demand [5]