(Reuters) – Chip-making tools supplier Lam Research forecast second-quarter revenue slightly below Wall Street estimates on Wednesday, as demand from chipmakers remained under pressure due to sluggish consumer spending on electronics.
The company’s shares fell about 3% in after-market trading. The Fremont, California-based company’s outlook followed a warning of flat sales from rival and Europe’s largest technology firm ASML Holding NV earlier on Wednesday.
Lam expects current-quarter revenue of $3.7 billion plus or minus $300 million, compared with analysts’ estimate of $3.65 billion, according to LSEG data.
Major markets for chips like smartphones, PCs and data centers remained pressured, as customers tighten spending against the backdrop of worries over uncertain global economic growth, sticky inflation and higher borrowing costs.
TSMC, the world’s top contract chipmaker, in September told its major suppliers to delay the delivery of high-end chipmaking equipment, on concerns over customer demand.
Lam posted first-quarter revenue of $3.48 billion, compared with market estimates of $3.41 billion. China constituted 48% of its first-quarter revenue compared with 30% a year earlier, the company said.
Excluding items, profit fell to $6.85 per share, compared with estimates of $6.12.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila)
