Applied Materials is trading 6.6% down at $523.81 in pre-market, extending this week’s sharp pullback as the broader semiconductor and AI-chip sectors face a significant selloff.
- The decline is driven by widespread profit-taking and valuation concerns among chip equipment manufacturers following a prolonged AI-driven rally.
- Market sentiment has been further pressured by sector-specific anxiety regarding TSMC’s large capital expenditure plans and broader concerns over the sustainability of AI spending.