Applied Materials' stock price slumped by double digits after the semiconductor equipment maker reported a project revenue decline amid tariff worries in China.

Applied Materials Inc. suffered the worst single-day stock decline in five years after giving a disappointing sales and profit forecast, renewing concerns that the US trade dispute with China is weighing on demand.

Analysts wonder if China’s recent “overspending” on chip equipment is coming to a halt — and if the company is losing market share to rivals.

Applied Materials CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the semiconductor industry" from the dynamic policy environment.

Lam Research ( LRCX -6.93%), one of a handful of large companies manufacturing equipment for the production of semiconductors, tumbled 6.9% through 1:45 p.m. ET this afternoon. As unbelievable as it may sound, you can blame one of Lam's big rivals, Applied Materials ( AMAT -13.98%), for Lam's troubles.

Shares of Applied Materials Inc (NASDAQ: AMAT) tanked despite upbeat fiscal Q3 results. BofA downgraded, Goldman Sachs reiterated buy, Needham kept buy.

U.S. stock futures edge higher as Dow leads on health-care surge, tech lags behind- U.S. stock futures were mixed early Friday, signaling a cautious but upward-tilted open for Wall Street after a week that tested investor nerves with hotter-than-expected inflation data and a flurry of corporate earnings surprises.

China is pulling back on purchases of semiconductor manufacturing equipment -- and KLA sells nearly as much stuff to China as Applied does. An earnings warning from Applied Materials just spooked KLA stock investors.