Applied Materials Gives Strong Forecast on Machinery Demand
- Company sees chip equipment market expanding again in 2022
- Some investors concerned industry earnings are peaking
Applied Materials Inc. gave a bullish forecast for the current quarter boosted by orders from chipmakers rushing to add capacity to meet a flood of demand for their products.
Revenue will be about $5.92 billion in the three-month period ending in July, the Santa Clara, California-based company said Thursday in a statement. Analysts, on average, estimated $5.52 billion, according to data compiled by Bloomberg. Profit, minus certain items, will be $1.70 to $1.82 per share in the fiscal third quarter, Applied Materials said. That compares with an average estimate of $1.56.
Applied Materials is the biggest maker of machinery used to produce semiconductors, the essential electronic component at the center of shortages currently hurting industries from smartphones to autos. The company, with customers including Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co. and Intel Corp., provides forecasts that are a key indicator of future demand for electronics.