(Reuters) -Chip tools maker Applied Materials Inc forecast second-quarter revenue above market estimates on Thursday, as it benefits from higher production of semiconductors that had been in short supply for the most of last year.
Shares of the Santa Clara, California-based company rose nearly 3% in trading after the bell.
Applied Materials is benefiting from electric vehicles gaining more popularity and automation adoption accelerating, even as consumer-driven electronics markets including PCs and smartphones, which use chips, remain weak.
Besides, to reduce reliance on Asian hubs, chipmakers are scrambling to boost capacity in the United States and Europe as a global shortage of semiconductors affected everything from smartphones to cars.
The company forecast revenue of $6.40 billion, plus or minus $400 million, compared with analysts’ average estimate of $6.29 billion, according to Refinitiv IBES data.
Revenue for the first quarter was $6.74 billion, compared with analysts’ average expectation of $6.69 billion.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli)
