Applied Materials, Inc. (NASDAQ:AMAT) shares are trading lower by 7% to $228.61 during Wednesday’s session. Shares of several semiconductor stocks are trading lower amid reports President Biden is considering further China restrictions and following Republican nominee Donald Trump's comments regarding the China-Taiwan standoff in an interview with Bloomberg. The sector may also be down following soft guidance from ASML.
Trump’s remarks regarding Taiwan’s dominant role in the U.S. chip industry and the outsourcing of manufacturing to Taiwan created concerns about potential political and economic instability. His comments suggested a possible shift in U.S. policy towards Taiwan, which could disrupt the semiconductor supply chain.
This geopolitical tension can cause investors to fear disruptions in the supply chain and potential tariffs or sanctions, affecting companies like Applied Materials that supply equipment to chip manufacturers.
ASML, another significant player in the semiconductor equipment industry, issued a less-than-optimistic forecast. ASML’s cautious outlook suggests potential challenges in the semiconductor market, such as reduced demand or technological and production hurdles.
This adds to the negative sentiment, impacting other companies in the industry, including Applied Materials.
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How To Buy AMAT Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Applied Materials’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
AMAT has a 52-week high of $255.89 and a 52-week low of $129.21.