Disco Shares Soar Most Since April on Booming AI Chip Demand

Disco Corp. shares jumped as much as 15% after the supplier of chipmaking tools reported better-than-expected quarterly earnings on surging demand for AI-related hardware.

The maker of grinders and dicers that shape and cut silicon wafers into individual semiconductors earned operating income of ¥47.3 billion ($299 million) in the December quarter, beating the average of analyst estimates of ¥39.3 billion. Given the Tokyo-based company is known for its conservative outlook, investors largely dismissed its outlook for the current quarter which missed expectations. Its shares gained the most since April and hit their highest intraday level since July 2024.