Applied Materials sinks 8%, as Samsung profit triggers chip sector selloff

Applied Materials, Inc. shares dropped approximately 8% on July 8, 2026. The decline followed a widespread selloff in the global semiconductor sector.

Samsung Electronics' record quarterly profit triggered a sell-the-news event for investors. Reports of a Chinese startup developing an AI chip fueled concerns about future demand fragmentation.

Morgan Stanley advised clients to reduce semiconductor exposure due to peak earnings momentum and high valuations. However, the firm raised its price target for Applied Materials to $647.