Applied Materials (AMAT, Financials) shares fell in extended trading Thursday after the chip equipment maker posted weaker-than-expected Q2 revenue amid lower sales in China.

Revenue totaled $7.10 billion, slightly below the $7.13 billion analyst forecast from LSEG. Semiconductor revenue came in at $5.26 billion, missing the $5.31 billion consensus.

Warning! GuruFocus has detected 6 Warning Signs with COIN.

Chinese revenue accounted for about 25% of total sales during the quarter, and the decline weighed on overall results. Still, the company said it had not seen a significant shift in customer demand.

Investors remain focused on potential U.S. tariffs targeting chips and electronics, which have been exempt since early April. The stock had fallen nearly 40% between January and April amid concerns over export licensing rules tied to AI chips. It has since recovered 40% on easing trade tensions.

Technically, shares had tested the upper trendline of a descending channel but failed to hold above the 200-day moving average before earnings. The RSI reached overbought levels, increasing the risk of profit-taking.

After-hours trading saw the stock fall to $165. Analysts are watching support at $158, near March and November peaks. A break below this level could push shares toward $145, where prior consolidation occurred.

On the upside, resistance may appear at $190 and again at $213, where trendlines and historical peaks cluster.

This article first appeared on GuruFocus.

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