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Applied Materials predicts lower Q4 revenue due to weak Chinese demand and tariff uncertainties, causing shares to drop.
Applied Materials, a major chipmaking equipment supplier, forecasted lower fourth-quarter revenue and profit due to weak demand in China and uncertainties from tariffs.
The company's shares dropped nearly 13% in extended trading.
Despite a 7.7% year-on-year increase in Q2 revenue to $7.30 billion, Applied Materials' outlook for the next quarter was below analysts' expectations.
The company cited challenges in exporting to China and unpredictable orders from customers as key factors.
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Applied Materials predice menores ingresos en el cuarto trimestre debido a la débil demanda china y las incertidumbres arancelarias, lo que provocó una caída en las acciones.