Applied Materials, one of the world’s leading semiconductor equipment makers, warned that expanded U.S. export restrictions will cut fiscal 2026 revenue by about $600 million, adding pressure to an already strained chip industry. Following the announcement, Applied Materials’ shares dropped 3% in after-hours trading. Applied Materials estimates the new rule will also reduce fourth-quarter revenue by about $110 million. In August, Applied Materials had already issued weak sales and profit guidance, reflecting the industry’s volatility. By tightening restrictions, the U.S. aims to safeguard its technological edge, but companies like Applied Materials now face heightened uncertainty over their growth outlook in critical markets like China.