Applied Materials (NASDAQ:AMAT) shares fell 5.8% in pre-market trading on Monday to $430 as US semiconductor stocks declined following calls from technology executives for a slower pace of advanced artificial intelligence development.
The move extended a decline in Applied Materials shares following the company’s fiscal third-quarter 2026 earnings report in August.
The supplied information did not identify a new company-specific announcement from Applied Materials accompanying Monday’s pre-market decline.
Applied Materials Reports Record Quarterly Revenue
Applied Materials reported fiscal third-quarter revenue of $9.12 billion, representing an increase of 25% from a year earlier and exceeding analyst expectations.
Non-GAAP earnings per share reached $3.50, compared with a consensus estimate of $3.40.
The company also forecast fiscal fourth-quarter revenue of up to $10.75 billion, above analyst estimates cited in the supplied information.
Despite the results, the shares declined following the earnings announcement as investors assessed the company’s margin outlook and the sustainability of its growth rate.
AI Spending Outlook Remains in Focus
Applied Materials is among the semiconductor equipment companies exposed to investment in chip manufacturing capacity, including spending associated with AI infrastructure.
Monday’s decline came as investors reassessed the potential implications of calls for slower AI development for future technology infrastructure investment.
Applied Materials shares were trading more than 40% below their 52-week high, according to the supplied data, following their decline since late August.
Technology Stocks Trade Lower
The broader technology sector also moved lower on Monday, with the Nasdaq Composite declining as semiconductor stocks faced selling pressure.
Applied Materials’ pre-market decline therefore occurred amid broader weakness in chip stocks as investors continued to assess AI-related capital expenditure, valuations and the company’s outlook following its latest quarterly results.