Applied Materials has experienced a dramatic drop in its stock, plummeting nearly 14% following disappointing earnings guidance and mounting concerns over demand from China. The company reported a notable increase in Q3 revenues and earnings that beat estimates, yet the outlook has spooked investors, resulting in a sharp decline in share prices. Analysts have responded by downgrading price targets, citing uncertainties in the semiconductor market and potential impacts from tariffs. A report indicated that the company may see a $500 million drop in sales due to a slowdown in the Chinese market. As uncertainties persist, the outlook for Applied Materials remains bleak, prompting questions about the future of the semiconductor cycle and the overall health of the industry.