By Reuters | Updated: August 16, 2024
Aug 15 (Reuters) – Applied Materials (AMAT.O) forecast fourth-quarter revenue slightly above Wall Street estimates on Thursday, anticipating a surge in AI-fueled demand for its chip-making equipment.
But shares of the Santa Clara, California-based company were down 2.8% in extended trading after having closed about 5% higher.
“I think some of the aftermarket pullback is based on how much the stock went up today… the mixed sales report from China and the wide variance in their fourth-quarter forecast,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
“Some analysts may have been looking for a more robust next-quarter forecast.”
Booming demand for AI-powered chips has increased the need for sophisticated and expensive wafer fabrication equipment essential for chip manufacturing, benefiting companies such as Applied Materials.
A rise in demand for high-performance computing and data centers has also boosted the need for memory semiconductors such as dynamic random access memory.
The largest U.S. semiconductor equipment maker 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.
Applied Materials, which supplies chipmaking tools to Samsung Electronics (005930.KS) TSMC (2330.TW) and Intel (INTC.O) competes with Lam Research (LRCX.O) Dutch firm ASML (ASML.AS) and KLA Corp (KLAC.O).
The company reported third-quarter revenue of $6.78 billion, beating an average estimate of $6.67 billion. Revenue from China fell 24% sequentially, to $2.15 billion.
Its adjusted profit per share was $2.12 per share, compared with the estimate of $2.02.
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@ Thomson Reuters 2024
