Applied Materials Inc. shares fell as much as 7.3% after the chip-equipment maker gave a lackluster forecast for the current period, highlighting the potential cost of the US trade dispute with China.

Those customers generally order machinery in advance of the opening of new production lines, or before upgrading existing ones. Therefore, if Applied Materials does well, it’s usually a sign that the chip industry roller coaster is on an upward trajectory.

Applied Materials, Inc. (NASDAQ:AMAT) will release its second-quarter financial results after the closing bell on Thursday, May 15. Analysts expect the Santa Clara, California-based company to report quarterly earnings at $2.