(Reuters) -Applied Materials forecast fourth-quarter revenue slightly above Wall Street estimates on Thursday, anticipating a surge in AI-fueled demand for its chip-making equipment.
Booming demand for AI-powered chips has increased the need for sophisticated and expensive wafer fabrication equipment (WFE) essential for chip manufacturing, benefiting companies such as Applied Materials.
Rising demand for high-performance computing and data centers has also boosted the need for memory semiconductors such as dynamic random access memory and flash memory, in turn benefiting suppliers of chip-making tools.
“The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term,” CEO Gary Dickerson said in a statement.
The largest U.S. semiconductor equipment maker, Applied Materials expects fourth-quarter revenue of about $6.93 billion, plus or minus $400 million, compared with analysts’ average estimate of $6.92 billion, according to LSEG data.
It forecast adjusted profit per share between $2.00 and $2.36, compared with an estimate of $2.14 per share.
The company reported third-quarter revenue of $6.78 billion, beating an average estimate of $6.67 billion. It reported 32% of its total revenue from China, compared with 27% a year earlier.
Applied Materials disclosed in May that it had received another subpoena from the U.S. Department of Commerce, as regulators sought more information about shipments to China.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.