Applied Materials, a key semiconductor equipment manufacturer, saw its shares fall up to 4% in pre-market trading as the United States intensified export restrictions aimed at limiting China's access to advanced chipmaking technology. The company forecasted a $600 million revenue loss for fiscal 2026 due to these expanded controls, which previously prevented the shipment of $110 million worth of products in the fourth quarter. However, these restrictions were later suspended following a meeting between President Donald Trump and Chinese President Xi Jinping.
Despite the China-related challenges, Applied Materials reported stronger-than-expected quarterly results, with adjusted earnings of $2.17 per share on revenue of $6.8 billion, beating analyst estimates. The company provided optimistic guidance for the current quarter, expecting revenue of $6.85 billion at the midpoint, ahead of consensus projections. CEO Gary Dickerson noted that non-U.S. competitors are capitalizing on the situation, as they face fewer restrictions.
For the cryptocurrency sector, this development raises concerns about the supply of semiconductor equipment essential for manufacturing mining hardware, such as ASICs used in Bitcoin mining. Any disruption could lead to increased costs and reduced availability of mining rigs, potentially impacting mining profitability and network security. Analysts highlight that while China's sales now represent about 20% of Applied Materials' revenue, down from 40%, the overall semiconductor supply chain issues could have ripple effects on crypto mining operations globally.
