(Reuters) -Chip tools maker Applied Materials Inc forecast third-quarter revenue above market estimates on Thursday, as chipmakers expand production plans to meet a global shortage felt by electronics and auto manufacturers.
Even though consumer-driven markets, including PCs and smartphones remain weak, demand from artificial intelligence and automotive sectors is giving Applied Materials the much-needed boost amid a slow economy.
Companies such as KLA Corp, Applied Materials and Lam Research Corp are also gaining from chipmakers rushing to invest more in new factories in the United States and Europe, encouraged by rising use of semiconductors and generous subsidies aiming to boost domestic chip production.
Applied Materials forecast third-quarter revenue of $6.15 billion, plus or minus $400 million, compared with analysts’ estimates of $6.02 billion, according to Refinitiv IBES data.
The company posted second-quarter revenue of $6.63 billion, compared with estimates of $6.38 billion.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta)
