New York, Feb 4, 2026, 17:40 EST — After-hours
- Chip equipment stocks fell after investors reevaluated the AI rally and upcoming guidance.
- Traders are eyeing next week’s Applied Materials earnings for new clues on demand.
Applied Materials dropped 6.6%, closing at $297.60 Wednesday evening, hitting a trough of $287.72 during the day as semiconductor shares faced another round of selling pressure.
The move stood out amid a broader selloff in expensive tech stocks. The S&P 500 slipped 0.51%, the Nasdaq dropped 1.51%, and the PHLX semiconductor index, a key chip stock barometer, plunged 4.4%. “The market is suddenly skeptical and concerned,” said Jed Ellerbroek, portfolio manager at Argent Capital in St. Louis. 1
Shares of Advanced Micro Devices fell sharply as investors zeroed in on its guidance for the current quarter. Bernstein analyst Stacy Rasgon remarked, “Overall results weren’t all that much beyond ‘inline’ without the China boost.” 2
Chip equipment stocks slid together. KLA dropped 3.6%, and Lam Research plunged 8.8% for the session.
Thursday sees traders focused on whether the selloff in big tech continues, following Nasdaq-100 futures dropping to an 11-week low. Treasury yields nudged up, putting further pressure on pricey growth names. 3
Applied Materials is gearing up for a key moment: its quarterly earnings report. The company will unveil its fiscal first-quarter results on Feb. 12, followed by an earnings call after markets close. 4
Investors are likely to look to that report as a key indicator for 2026 spending on chipmaking equipment, particularly when it comes to AI-driven expansions in memory and advanced logic capacity.
The downside risk remains. U.S. export restrictions continue to weigh on the sector, with Applied Materials earlier warning of a revenue impact linked to wider chip export controls. 5
Next on deck: Applied’s results and outlook for Feb. 12, along with any clues on whether the chip selloff is steadying—or gearing up for another drop.
