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

Applied Materials shares slid about 15% in premarket trading on Friday after the company issued disappointing sales and profit forecast, stoking investor concerns that the U.S.-China trade dispute was eroding demand.

Shares of Applied Materials (AMAT) are gapping lower after the company shared a downbeat fiscal fourth-quarter forecast