Applied Materials Inc. (AMAT) anticipates a $600 million revenue hit in fiscal 2026 from expanded U.S. export restrictions to China, as outlined in a Sept. 29 Commerce Department rule targeting subsidiaries with at least 50% ownership by sanctioned entities. anticipates a $600 million revenue hit in fiscal 2026 from expanded U.S. export restrictions to China, as outlined in a Sept. 29 Commerce Department rule targeting subsidiaries with at least 50% ownership by sanctioned entities. Shares of the Santa Clara-based semiconductor equipment leader dropped as much as 5.6% in extended trading after closing up 2.7% at $223.59, highlighting market sensitivity to geopolitical curbs on China sales. The measure advances Washington’s national security strategy to hinder China’s domestic chip production, compelling firms like Applied Materials to adapt operations amid tightening global controls on competitors. Amid these challenges, Applied Materials continues to leverage its technological edge in deposition, etching, and inspection tools critical for advanced node fabrication, positioning it to pivot toward allied markets in Europe and Asia-Pacific.