Applied Materials, the biggest U.S. chip-equipment maker, is a key player in the AI and broader semiconductor space.

Applied Materials gave a slightly disappointing outlook, driving its shares lower in after-hours trading Thursday. The chip equipment maker reported adjusted earnings of $2.32 a share for the October quarter,

Applied Materials reported quarterly earnings of $2.32 per share, which beat the analyst consensus estimate of $2.19. Quarterly revenue clocked in at $7.05 billion, which beat the analyst consensus estimate of $6.95 billion and is an increase over sales of $6.72 billion from the same period last year.

Applied Materials (AMAT) shares were active in late trading on Thursday after the semiconductor equipment maker reported fiscal fourth-quarter results. Read for more.

During the quarter, Applied Material’s semiconductor systems business unit – by far its biggest – delivered revenue of $5.18 billion, up 6% from a year ago. Sales in the global services segment rose 11% to $1.64 billion, while revenue from the much smaller display and adjacent markets unit fell 29% to $211 million.

Applied Materials forecasts revenue growth of between 8% and 12% across its core semiconductor-systems business and its applied global-services segment, respectively, but also a 28% drop in display revenue due to sales headwinds in China.

Applied Materials (AMAT) reported fiscal fourth-quarter earnings that missed analysts’ expectations, sending shares lower after the bell Thursday despite a revenue beat. The semiconductor equipment maker saw revenue grow 5% year-over-year to $7.

The company guided for first-quarter adjusted earnings of $2.29, plus or minus 18 cents, and revenue of $7.15 billion, plus or minus $400 million. Wall Street forecasts adjusted earnings of $2.27 and revenue of $7.