American chip equipment giant Applied Materials' performance outlook falls short, with the company's stock price sharply dropping after hours.

The quarterly sales and profit outlook from the largest chip equipment manufacturer in the United States, Applied Materials, disappointed, once again sparking concerns that the trade dispute is dampening demand. The company's stock price plummeted after hours. Applied Materials expects revenue for the quarter ending in late October to be around $6.7 billion, well below the analysts' average estimate of $7.32 billion. The company expects earnings per share of $2.11, excluding certain items, also below analysts' estimate of $2.38. Applied Materials CEO Gary Dickerson, in an interview, stated that demand from some customers is decreasing, while technological exports are facing delays in approval. Additionally, prolonged tariff negotiations and other economic factors have led major clients to delay some purchases. Applied Materials' stock price fell by 12% in after-hours trading. As of Thursday's close, the company's stock price has risen by 16% this year, closing at $188.24 on Thursday. Applied Materials reported a 7.7% year-on-year increase in revenue to $7.3 billion in the last quarter, higher than the analysts' average estimate of $7.21 billion, with earnings per share of $2.48, also higher than the estimated $2.36.