Shares of Applied Materials (NASDAQ: AMAT) were down big at the market open after another round of negative economic news. The market rallied later in the morning, sending the stock up 3.7% as of 1:03 p.m. ET on Thursday. 

Market traders had a lot to digest. In addition to a negative inflation report, Applied Materials warned that revenue will be lower than originally expected next quarter. But after falling 50% this year, the market might be starting to focus on the value underneath the stock price. 

The recent export restrictions on chip sales to China are expected to cut between $250 million to $550 million from the company's net sales for the fiscal fourth quarter ending Oct. 30. This would also include improvements to the supply chain.

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Source Fool.com