Shares of Applied Materials fell in late trading Thursday after the chip equipment maker reported solid earnings for its fiscal third quarter.

Applied Materials remains a beneficiary of ballooning capital expenditures on artificial-intelligence processors and memory chips, but that trend also meant the company had a high bar to clear Thursday.

The stock fell 3.5% to $516 in after-hours trading. Shares tumbled 30% in July, but are up 108% this year.

Applied Materials reported adjusted earnings of $3.50 a share for the quarter, up from $2.48 a year ago and above analysts' consensus estimates of $3.40, per FactSet. Revenue jumped 25% from the year prior to $9.12 billion, beating Wall Street's call for $9 billion.

The company expects revenue of $10.25 billion, plus or minus $500 million, and adjusted earnings of $4.02 a share, plus or minus 20 cents, for its fiscal fourth quarter. Analysts had forecast revenue of $9.55 billion and adjusted earnings of $3.71 a share.