(Reuters) – Semiconductor equipment maker Applied Materials on Thursday forecast first-quarter revenue above Wall Street estimates, helped by a recovery in the personal computer market and rising demand for artificial intelligence tools.
Recent earnings from Intel and Advanced Micro Devices have offered more evidence a recovery is gathering pace in the PC market, boding well for an industry that had been grappling with a supply glut after the pandemic.
Companies focusing on generative AI tools this year has also led to an increase in spending for Applied Materials’ equipment.
The Santa Clara, California-based company expects first-quarter revenue of about $6.47 billion, plus or minus $400 million, compared with analysts’ estimates of $6.37 billion, according to LSEG data.
Applied Materials reported fourth-quarter revenue of $6.72 billion, beating estimates of $6.52 billion.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shounak Dasgupta)