What's Going On With Applied Materials (AMAT) Stock?

Shares of Applied Materials Inc AMAT are trading lower by 0.9% to $149.32 during Thursday’s session, hovering around their 52-week low. The stock has been volatile this week following the Trump administration's decision to tighten export controls on Chinese technology firms. 

What To Know: As a leading supplier of semiconductor manufacturing equipment, Applied Materials faces risks from new trade restrictions that could curb demand for its products from Chinese chipmakers.

On Tuesday, the U.S. Commerce Department added over 50 Chinese entities to its trade blacklist, limiting their access to advanced semiconductor technology.

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Since Applied Materials provides essential tools for chip fabrication, restrictions on Chinese semiconductor firms could reduce orders for its deposition, etching and lithography systems.

What Else: China is a critical market for Applied Materials, accounting for a substantial portion of its revenue. The latest crackdown follows previous U.S. efforts to block China's semiconductor advancements, including restrictions on the export of extreme ultraviolet lithography tools. 

With China retaliating through new chip efficiency standards and potential supply chain shifts, Applied Materials investors could be bracing for potential revenue headwinds, supply chain disruptions and prolonged regulatory uncertainty that could impact the company’s long-term growth prospects.

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How To Buy AMAT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Applied Materials’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, AMAT has a 52-week high of $255.89 and a 52-week low of $145.38.