Applied Materials cited weakness from leading edge customers and said China clients are easing spending after a period of rapid manufacturing.

The stock sunk in extended trading as the company's outlook for the current quarter came in light.

China, an essential market for chip companies, was Applied’s largest revenue driver in the July quarter.

Applied Materials cited weakness from leading edge customers and said China clients are easing spending after a period of rapid manufacturing.

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