Applied Materials shares fell more than 4% on July 13. A disappointing profit forecast from South Korean chipmaker SK Hynix, a key customer, triggered the decline.
The news impacted the broader semiconductor sector, including Intel and AMD. The Philadelphia Semiconductor Index saw a significant decline during the session.
Escalating geopolitical tensions between the U.S. and Iran further pressured technology stocks. Rising oil prices drove a risk-off sentiment, causing investors to move away from high-growth sectors.