Applied Materials shares drop amid chip sector selloff

Applied Materials Inc. shares fell 5.9% in morning trading on Friday to $396.96 as a broad selloff swept through the semiconductor sector.

The decline followed Intel Corp.'s weaker-than-expected fourth-quarter outlook, which revived concerns about the strength of AI-driven chip demand. Intel projected revenue of $15 billion to $16 billion for the fourth quarter, below Wall Street's expectation of roughly $17 billion. The company also forecast a significant contraction in the global PC market through at least the first half of 2027.

Amazon.com Inc. added to the sector pressure after reporting negative free cash flow for the second consecutive quarter while keeping its large capital expenditure forecast unchanged. The results raised questions about near-term returns on AI infrastructure spending.

Applied Materials is scheduled to report its fiscal 2026 results on November 12. Without immediate earnings results to provide support, the stock moved in line with broader sector weakness.

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