(Reuters) – Chip tools maker Applied Materials Inc forecast first-quarter revenue above market estimates on Thursday, on hopes that easing supply chain constraints will help it meet pent up demand from chipmakers ramping up production.
Shares of the Santa Clara, California-based company rose nearly 3% in trading after the bell.
Even though the wider chip industry is seeing sluggish demand for consumer electronics like PCs and smart phones, the growing adoption of 5G and shift to hybrid work still remains positive.
Moreover, Applied is also set to benefit from a U.S. push to cut dependency on China and ramp up domestic chip output, prompting chipmakers like Intel Corp and Taiwan Semiconductor Manufacturing to announce plans for new plants.
Revenue for the quarter ended Oct. 30 was $6.75 billion, compared to analysts’ average expectation of $6.45 billion, according to Refinitiv IBES data.
The company forecast current-quarter revenue of $6.70 billion, plus or minus $400 million, compared with analysts’ average estimate of $6.45 billion, according to Refinitiv IBES data.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber)
