What's Going On With Applied Materials Stock?

Applied Materials, Inc. AMAT shares are trading lower by 2.69% to $141.10 Friday afternoon. Shares of several semiconductors stocks are trading lower amid continued inflation and rate hike concerns. Reports suggesting the U.S. is looking to close the leeway that helped Chinese companies access American AI chips is also negatively impacting stocks.

Concerns about inflation and rate hikes can lead to a broader sell-off in the stock market. When investors anticipate higher interest rates, they may reallocate their investments away from stocks, which could lead to a decline in Applied Materials' stock price, as well as other semiconductor stocks.

Additionally, if the U.S. restricts or closes the leeway that allowed Chinese companies to access American AI chips, it can disrupt the global semiconductor supply chain. Applied Materials is a key player in providing equipment and technology for semiconductor manufacturing.

A disruption in the supply chain or reduced demand from Chinese customers could negatively impact their revenue and stock price.

See Also: U.S. Consumer Sentiment Tumbles In October

According to data from Benzinga Pro, AMAT has a 52-week high of $155.26 and a 52-week low of $74.15.