Applied Materials Inc. suffered the worst single-day stock decline in five years after giving a disappointing sales and profit forecast, renewing concerns that the US trade dispute with China is weighing on demand.

Applied Materials CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the semiconductor industry" from the dynamic policy environment.

Applied Materials' stock price slumped by double digits after the semiconductor equipment maker reported a project revenue decline amid tariff worries in China.