(Reuters) – Chip tools maker KLA Corp forecast fourth-quarter revenue and profit above Wall Street expectations on Wednesday, riding on plans by chipmakers to expand production and build new factories in Europe and the United States.
Shares of the Milpitas, California-based company rose 2.2% in trading after the bell.
From chips used for AI work that power chatbots like ChatGPT to those used for automating cars, the demand for semiconductors has jumped in the last few years. Chipmakers are scrambling to boost capacity and tool makers including KLA and Applied Materials will gain from this.
KLA makes tools for inspecting the silicon wafer discs, on which semiconductors are built, for defects.
Top KLA customers Taiwan Semiconductor Manufacturing Co and Samsung Electronics have both announced billions of dollars in investments to build new plants in the United States amid growing U.S.-China tensions. Chipmaker Intel too has announced similar plans.
While the semiconductor industry is ploughing through a supply glut, many chipmakers expect recovery in the second half of this year.
KLA forecast current-quarter revenue between $2.13 billion and $2.38 billon, compared to analysts’ estimates of $2.17 billion, according to Refinitiv data. It forecast adjusted earnings per share in the range of $4.23 to $5.43, the mid-point of which is also above estimates of $4.43.
Revenue in the third quarter ended March 31 rose 6.3% to $2.43 billion, beating estimates of $2.38 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shailesh Kuber)
