Applied Materials forecasts quarterly revenue above estimates on strong AI chip demand

Nov 12 (Reuters) - Applied Materials forecast first-quarter revenue above Wall Street expectations on Thursday, betting that strong demand for advanced AI chips will continue to fuel spending on its semiconductor manufacturing equipment.

Shares of the Santa Clara, California-based company were up 3% in extended trading.

Applied Materials, which supplies equipment for key wafer-fabrication processes, is benefiting from increased spending by chipmakers to support a rapid build-out of AI infrastructure.

The company forecast quarterly revenue of around $11.10 billion, plus or minus $500 million, compared with the average of analysts’ estimates of $10.89 billion, according to data compiled by LSEG.

The company reported fourth-quarter revenue of $10.41 billion, beating analysts’ average estimate of $10.30 billion.