Applied Materials Inc, the largest US producer of chipmaking gear, plunged in late trading yesterday after giving a disappointing sales and profit forecast, renewing concerns that the US trade dispute with China is weighing on demand.

Shares of Applied Materials fell nearly 14% in premarket trading on Friday after the US chip equipment maker issued a downbeat fiscal fourth-quarter forecast, citing sluggish demand from China and growing tariff-related risks.

Applied Materials forecast fourth-quarter revenue and profit below estimates on Thursday, citing weak demand in China and erratic orders from customers facing uncertainty because of tariffs, sending its shares down nearly 13 per cent in extended trading.