New York, March 3, 2026, 18:28 (EST) — After-hours.
- Applied Materials shares were down about 5.6% in late trading.
- A jump in energy prices and war headlines hit risk appetite across tech.
- Traders now pivot to U.S. jobs data on March 6.
Applied Materials (AMAT.O) shares fell 5.6% to $351.32 in after-hours trading on Tuesday, down $20.85 from the previous close and valuing the company at about $255 billion. The stock traded between $348.81 and $361.67 during the day.
The drop tracked a broad retreat in U.S. equities as investors weighed a widening Middle East conflict and the risk that higher energy costs keep inflation sticky. “…starting to potentially impact energy infrastructure,” said Chuck Carlson, chief executive of Horizon Investment Services. 1
Oil extended its rally, with U.S. crude settling up 4.7% at $74.56 a barrel for its highest settlement since June, while Brent ended at $81.40. Kevin Gordon, head of macro research & strategy at Charles Schwab, said the market is headline-driven and the “potential for whiplash” is high. 2
Chip and AI-infrastructure stocks took the brunt, dragging down toolmakers that sell the equipment used to build semiconductors. ASML and KLA were down more than 6% in the session, while Applied and Lam Research fell more than 5%, a Nasdaq.com market note said. 3
A day earlier, Applied executives struck a confident tone at the Morgan Stanley Technology, Media & Telecom conference, describing customers pressing hard for on-time tool deliveries as chip plants ramp. “The demand is very high,” semiconductor products chief Prabhu Raja said, adding customers want him “ready for the super cycle” as the company tracks about 100 fabs. Applied projected more than 20% shipment growth this calendar year and said it has doubled manufacturing capacity versus pre-COVID levels, with customers giving visibility up to two years. 4
Applied makes wafer-fab equipment — the deposition, etch and other tools used to add and shape layers on silicon wafers — and sells services to keep factory lines running. Demand tends to follow chipmakers’ capital spending, which can swing fast when financing costs or end-demand changes.
But the same forces hitting the sector now can linger. If energy prices stay elevated and bond yields push higher, chipmakers may slow new fab spending and investors can compress the multiples they pay for tool suppliers.
Investors turn next to Friday’s U.S. Employment Situation report on March 6 for the next read on jobs, wages and the rate outlook, with war headlines still setting the tone for oil and risk appetite. 5
