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,

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.