Chip equipment makers stocks fall warned it may not achieve growth in 2026 due to uncertainty surrounding U.S. tariffs.

Applied Materials (NASDAQ: AMAT) stock dropped 2.5%, while Lam Research (NASDAQ: LRCX) declined 2.2% and KLA Corp (NASDAQ: KLAC) slid 2.3%. The sector-wide pressure followed ASML’s (NASDAQ: ASML) cautionary statement that chipmakers building factories in the U.S. are delaying investment decisions as they await clarity on potential tariff impacts.

ASML shares tumbled as much as 7.8%, on track for their worst trading day since October, after the world’s largest supplier of chip-making equipment raised concerns about its 2026 outlook.

“The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs,” said ASML Chief Executive Christophe Fouquet in an interview published on the company’s website.

CFO Roger Dassen elaborated that chipmakers in the U.S. are postponing the finalization of investments due to ongoing uncertainty in tariff negotiations. The company is working with its supply chain to mitigate any potential tariff impacts, though both the direct and indirect effects remain unclear.

“While we still prepare for growth in 2026, we cannot confirm it at this stage,” Fouquet stated, signaling caution about the company’s medium-term outlook that appears to have rippled across the semiconductor equipment sector.