Applied Materials Shares Drop After KOSPI Plunge on LNG Price Shock Fears
Applied Materials shares plunged during the afternoon session after South Korea’s KOSPI index fell on fears of an LNG price shock triggered by an Iran conflict, highlighting risks of rising energy costs for chipmakers. The broader sell-off in Samsung Electronics and SK Hynix spread negative sentiment to U.S. semiconductor stocks including Applied Materials.
1. Sector Sell-Off Impacts Applied Materials
U.S. semiconductor stocks, including Applied Materials, sold off sharply after South Korea’s KOSPI index plunged on fears of an energy price shock. The market rout in major memory chip suppliers like Samsung Electronics and SK Hynix drove a wave of selling into afternoon trading for Applied Materials shares.
2. Iran Conflict Spurs LNG Cost Concerns
Renewed geopolitical tensions around Iran stoked worries of a liquefied natural gas price surge, since South Korea imports significant LNG volumes. Investors fear a sustained energy cost increase could squeeze operating margins for global chipmakers, fueling the sector-wide decline that weighed on Applied Materials.