Shares of Applied Materials Inc (NASDAQ: AMAT) tanked despite upbeat fiscal Q3 results. BofA downgraded, Goldman Sachs reiterated buy, Needham kept buy.

Beijing E-Town Semiconductor Technologies , a semiconductor equipment firm backed by Beijing's government, on Wednesday said it has sued U.S. chip equipment supplier Applied Materials over alleged trade secrets infringement.

Applied Materials' stock price slumped by double digits after the semiconductor equipment maker reported a project revenue decline amid tariff worries in China.

Applied Materials (AMAT) stock falls after the company issued guidance that fell short of Wall Street's expectations. Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) added to its stakes in homebuilder stocks Lennar (LEN) and DR Horton (DHI).

Shares of technology companies declined as a tepid outlook from one major chip-equipment manufacturer cast a pall on the semiconductor sub-sector. Shares of Applied Materials plunged after the maker of semiconductor manufacturing equipment forecast growth short of Wall Street expectations.

CNBC's Kristina Partisinevelos joins 'Squawk on the Street' to discuss the latest earnings from Applied Materials.

Bank of America downgraded Applied Materials to Neutral from Buy and cut its price objective to $180 from $190, citing a weaker-than-expected fiscal fourth-quarter outlook and growing exposure to sluggish chip equipment segments.

Applied Materials reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion. The chip equipment manufacturer reported third-quarter adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share, according to Benzinga Pro.