Applied Materials Inc. suffered the worst single-day stock decline in five years after giving a disappointing sales and profit forecast, renewing concerns that the US trade dispute with China is weighing on demand.

Applied Materials' stock price slumped by double digits after the semiconductor equipment maker reported a project revenue decline amid tariff worries in China.

Applied Materials forecast fourth-quarter revenue and profit below estimates on Thursday, citing weak demand in China and erratic orders from customers facing uncertainty due to tariffs, sending its shares down nearly 13% in extended trading.

Applied Materials (AMAT) stock falls after the company issued guidance that fell short of Wall Street's expectations. Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) added to its stakes in homebuilder stocks Lennar (LEN) and DR Horton (DHI).

Applied Materials was the worst-performing stock in the S&P 500 Friday, a day after the semiconductor equipment manufacturer gave weaker-than-expected guidance as global economic and tariff worries impact its business,

Beijing E-Town Semiconductor Technologies , a semiconductor equipment firm backed by Beijing's government, on Wednesday said it has sued U.S. chip equipment supplier Applied Materials over alleged trade secrets infringement.

Applied Materials ( NASDAQ: AMAT) provided fourth quarter fiscal 2025 guidance that demonstrated a year-over-year revenue decline of 4.9% and an adjusted earnings per share drop of 9% during its latest financial results on Thursday.

Applied Materials forecast fourth-quarter revenue and profit below estimates on Thursday, citing weak demand in China and erratic orders from customers facing uncertainty because of tariffs, sending its shares down nearly 13 per cent in extended trading.

Shares of technology companies declined as a tepid outlook from one major chip-equipment manufacturer cast a pall on the semiconductor sub-sector. Shares of Applied Materials plunged after the maker of semiconductor manufacturing equipment forecast growth short of Wall Street expectations.