New York, March 3, 2026, 18:28 (EST) — After-hours.
- Applied Materials dropped around 5.6% in late trading.
- War headlines and a spike in energy prices knocked risk appetite in tech.
- Next up: traders turn their focus to U.S. jobs data due March 6.
Applied Materials (AMAT.O) lost 5.6% after hours on Tuesday, slipping $20.85 to $351.32. That drop puts the chip equipment maker’s market value near $255 billion. Earlier, shares moved between $348.81 and $361.67.
U.S. stocks fell across the board, investors uneasy about escalating turmoil in the Middle East and what pricier oil might mean for stubborn inflation. “…starting to potentially impact energy infrastructure,” Horizon Investment Services CEO Chuck Carlson said. 1
Oil kept climbing, U.S. crude finishing the day 4.7% higher at $74.56 a barrel—a level not seen since June. Brent closed at $81.40. “Potential for whiplash” remains significant, said Kevin Gordon, head of macro research & strategy at Charles Schwab, pointing to a market that reacts sharply to headlines. 2
Chip and AI-infrastructure names led the decline, hitting toolmakers that supply semiconductor-building gear especially hard. ASML and KLA each lost over 6% during the session, with Applied and Lam Research both off more than 5%, according to a Nasdaq.com market note. 3
Just a day before, Applied’s leadership spoke with conviction at the Morgan Stanley Technology, Media & Telecom conference. Customers, they said, are pushing hard for punctual tool shipments as chip factories pick up the pace. “The demand is very high,” noted semiconductor products head Prabhu Raja, who also mentioned that clients expect him “ready for the super cycle”—the company is monitoring roughly 100 fabs. For this year, Applied is guiding for shipment growth north of 20% and says manufacturing capacity has doubled since pre-COVID days. Customers, the company said, are now providing up to two years of visibility. 4
Applied produces wafer-fab equipment—think deposition, etch, and other machines that build up and sculpt layers on silicon wafers—plus it offers services aimed at keeping chip factories humming. Orders rise and fall in step with chipmakers’ capital budgets, which can shift quickly as borrowing costs or demand for end products moves.
The pressures hammering the sector aren’t likely to vanish soon. Should energy prices remain high while bond yields keep climbing, chipmakers could throttle back on plans for new fab investments, and investors might tighten up the multiples they’re willing to pay for tool suppliers.
Next up for investors: Friday’s U.S. Employment Situation report on March 6, a key update on jobs, wages, and clues for the rate path. War headlines, though, remain the main driver for oil prices and risk sentiment. 5
