Applied Materials ( AMAT -13.76%), one of the world's biggest makers of manufacturing equipment for producing semiconductors, crashed 14% through 1:55 p.m. ET despite reporting strong earnings last night.

Analysts wonder if China’s recent “overspending” on chip equipment is coming to a halt — and if the company is losing market share to rivals.

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.