Applied Materials (NASDAQ:AMAT) shares slid 3% in extended trading on Thursday after the semiconductor equipment company disclosed that a new rule will further hurt its ability to export certain products to China-based customers.
“On September 29, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security issued a new rule that expands the list of companies subject to U.S. export restrictions (the “BIS Affiliates Rule”),” Applied Materials said in a filing with the Securities and Exchange Commission.
The chip equipment maker added that the new ruling is likely to reduce revenue in the fourth-quarter by $110M and roughly $600M in fiscal 2026.
Last month, KeyBanc Capital said Applied Materials shares have lagged those of its competitors this year due to its exposure to China.
