Applied Materials on Thursday forecast third-quarter revenue above Wall Street estimates, betting that heavy spending on data centers and AI infrastructure will sustain strong demand for its chip-making tools. Shares of the Santa Clara, California-based company rose 6% in extended trading.
The ongoing AI boom is benefiting equipment suppliers like Applied Materials, as building more powerful AI chips requires not only more silicon wafers but also more complex manufacturing processes. The company expects revenue of about $8.95 billion, plus or minus $500 million, for the current quarter, above the average analyst estimate of $8.09 billion.
For the second quarter ended April 26, Applied Materials reported revenue of $7.91 billion, beating estimates of $7.65 billion.