Why Applied Materials Stock Got Mashed on Monday
Monday was not a good day for chip manufacturing companies and the businesses that supply them. That morning, the government expanded its limits on U.S. exports of advanced computer chips to China. As a result, the share price of chipmaking equipment specialist Applied Materials (NASDAQ: AMAT) took a more than 4% tumble across the trading day.
The limits, which cover high-end products such as those used in artificial intelligence (AI) applications and supercomputers, come on the heels of earlier measures aimed at curbing China's access to advanced chips. The government is concerned that the massive Asian nation could use such products for potentially threatening purposes.
The measure is being enacted by the Department of Commerce's Bureau of Industry and Security (BIS).
Source Fool.com
