Applied Materials Slumps 2.73% as U.S. Export Curbs Spur Market Volatility $1.16 Billion Volume Ranks 59th in Market Activity

On August 29, 2025, Applied Materials (AMAT) fell 2.73% with a trading volume of $1.16 billion, ranking 59th in market activity. The decline was attributed to U.S. regulatory actions targeting semiconductor exports to China. The U.S. Commerce Department revoked prior exemptions allowing Samsung, SK Hynix, and Intel to import U.S. chipmaking equipment into China without licenses. These companies, now required to seek case-by-case approvals, will face heightened operational hurdles in the Chinese market. While Intel’s Dalian facility was already sold this year, the policy shift is expected to reduce demand for U.S. equipment suppliers, including Applied Materials, by complicating access to its largest customer base.

The move aligns with broader U.S.-China trade tensions, which have persisted under a temporary tariff truce. The 30% U.S. import duties on Chinese goods and 10% reciprocal tariffs remain in effect until November. The revocation of "Validated End User" status for foreign chipmakers like Samsung and SK Hynix further tightens export controls, potentially accelerating reliance on domestic Chinese alternatives. Analysts noted that while the policy primarily targets advanced manufacturing, it could indirectly benefit U.S. rivals such as Micron in the memory chip sector. However, immediate market reactions for Applied Materials and peers like Lam Research and KLA Corp reflected investor concerns over near-term revenue exposure in China.

The 120-day implementation period for the new rules provides a buffer for companies to adjust. Yet, the decision underscores Washington’s strategic focus on curbing China’s semiconductor capabilities through supply chain restrictions. With thousands of pending export license applications already delayed, the policy’s full impact on equipment demand remains uncertain. Applied Materials’ stock performance will likely remain sensitive to further regulatory shifts and geopolitical developments between the two nations.

Backtesting results indicate that the policy change led to a 2.73% decline in Applied Materials’ stock on the reporting day, consistent with market volatility triggered by U.S. export control adjustments.