Applied Materials Stock Plummets 14% as Weak Earnings and China Demand Concerns Spark Sell-Off Trading Volume Surges 162% to 5.22 Billion Ranking 14th in Market

On August 15, 2025, Applied Materials (AMAT) fell 14.07%, with a trading volume of $5.22 billion, a 162.38% surge from the previous day, ranking 14th in the market. The decline marked its worst single-day drop since the early pandemic period in 2020.

The selloff followed a weak earnings outlook, as the company projected Q4 revenue of $6.7 billion, below analyst estimates of $7.32 billion. CEO Gary Dickerson highlighted reduced demand from Chinese clients and export approval delays, compounding uncertainty over prolonged U.S.-China trade negotiations. Despite Q3 revenue rising 7.7% to $7.3 billion, the forecast signaled waning momentum in key markets.

Applied Materials also faced a lawsuit from Beijing E-Town Semiconductor over alleged trade secret theft, adding to investor concerns. However, the firm reiterated its commitment to expanding U.S. manufacturing partnerships, including a $200 million Arizona facility for Apple’s “American Manufacturing Program,” which analysts view as a strategic move to strengthen its position in advanced semiconductor tooling.

Long-term demand for computing power remains robust, according to management, though short-term headwinds persist. The stock’s sharp decline reflects immediate concerns over China’s demand slowdown and regulatory hurdles, despite a positive outlook for U.S. semiconductor production growth.

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