Applied Materials, a leading supplier of semiconductor manufacturing equipment, saw its stock plunge by 5% in after-hours trading on Thursday, despite reporting better-than-expected fiscal first-quarter earnings and revenue.

The company reported earnings of $2.38 per share, surpassing analysts' expectations of $2.28 per share. Revenue for the quarter was $7.17 billion, also beating Wall Street forecasts of $7.15 billion. However, the company's forward guidance for the second quarter raised concerns among investors.

For the current quarter ending in April, Applied Materials projected earnings between $2.12 and $2.48 per share, and revenue in the range of $6.7 billion to $7.5 billion. This outlook, coupled with ongoing uncertainty surrounding the semiconductor industry's demand outlook, appears to have fueled the after-hours sell-off in the company's stock.