The semiconductor equipment sector is currently facing broad selling pressure as investors recalibrate expectations for the second half of 2026. Macroeconomic concerns, particularly regarding the Federal Reserve’s long-term interest rate trajectory, are weighing on capital-intensive technology firms. As a primary provider of wafer fabrication equipment, Applied Materials is sensitive to shifts in the cost of capital, which directly impacts the expansion plans of its global foundry and logic customers.

Increasing scrutiny over international trade restrictions continues to be a primary headwind for the company. Reports of potential tightening in export licensing requirements for advanced lithography and deposition tools to certain Asian…