Applied Materials’ Forecast Shows Bright Spots in Chip World

  • The shares gain after forecast exceeds analysts’ estimates
  • Automotive chipmakers have helped bolster company’s results
A technician checks on a stack of wafers at the Applied Materials facility in Santa Clara, California.Photographer: David Paul Morris/Bloomberg
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Applied Materials Inc., the biggest maker of semiconductor-manufacturing equipment, gave a strong sales forecast for the current quarter, benefiting from demand for gear that makes auto and industrial chips.

Second-quarter sales will be about $6.4 billion, the company said in a statementBloomberg Terminal Thursday. That beat the average analyst estimate of $6.3 billion and helped send Applied Materials shares up as much as 3.5% in late trading.