(Reuters) -Semiconductor equipment supplier Applied Materials forecast second-quarter revenue above Wall Street estimates on Thursday, on strong demand for AI chips and a recovery in the personal computer market, sending its shares up 8% in extended trading.
AI-embedded personal computers are the latest rage, pulling the PC market out of a post-pandemic slump and leading to increased demand for more advanced chips and by extension, for chip making equipment too. Applied Materials makes equipment that helps fabricate chips and counts Intel and Samsung among its customers.
“Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT over the next several years,” said CEO Gary Dickerson.
The Santa Clara, California-based company expects second-quarter revenue of $6.5 billion, plus or minus $400 million, compared with analysts’ average estimate of $5.92 billion, according to LSEG data.
Applied Materials also forecast adjusted profit per share of $1.79 to $2.15, above estimates of $1.79 per share.
The company reported first-quarter revenue of $6.71 billion, above estimates of $6.47 billion, according to LSEG data.
Governments across the world have been urging chipmakers to develop domestic production of semiconductors, to reduce reliance on China and Taiwan amid U.S.-Sino tensions. Analysts believe the push for stronger domestic supply chains for chips are benefiting companies such as Applied Materials and rival Lam Research.
Excluding items, first-quarter adjusted profit stood at $2.13 per share, beating estimates of $1.91 per share.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
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