Applied Materials sinks 14% on weak guidance due to China demand

The company jected $6.7 billion in revenue, versus the $7.34 billion estimate.During an earnings call with analysts, CEO Gary Dickerson said that the current macroeconomic backdrop and trade issues have fueled "increasing uncertainty and lower visibility," primarily within its China .He also said the guidance does not account for pending export license applications and assumes a significant backlog.Read more CNBC newsGoogle faces loss of Chrome as Perplexity bid adds drama to looming breakup decisionAmazon launches same-day dery of meat, eggs, duce in more than 1,000 citiesCoreWeave tanks 20% after posting wider-than-expected loss ahead of lock-up expirationHow Big is paying its way out of Trump's tariffsApplied Materials also cited weakness from leading-edge customers and said China clients are easing spending after rapidly ramping up equipment manufacturing in the region.Bank of America's Vivek Arya downgraded s to a neutral rating and lowered his price target, citing China and leading-edge headwinds."The uncertainty could persist, making it tougher for the stock to outperform despite reasonable valuation," he wrote. "We suspect the slowdown is more company specific."Despite the weak guidance, Applied Materials topped third-quarter earnings and revenue estimates, posting adjusted earnings of $2.48 per on $7.3 billion in revenue