Applied Materials shares fell 3.4% as geopolitical tensions between the US and China over AI technology increased uncertainty for semiconductor companies.

China ordered Meta to unwind its $2 billion acquisition of AI startup Manus citing national security concerns, while the White House accused China of stealing American AI technology on an 'industrial scale.'

Applied Materials shares dropped 3.4% in afternoon trading, part of a pattern where the stock has had 21 moves greater than 5% over the last year, indicating the market views the geopolitical news as meaningful but not fundamentally altering its perception of the business.

Global supply chain disruptions stemming from US-Israel-Iran conflict are raising investor concerns about potential production delays and increased operational costs for technology hardware companies.