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Chipmaking equipment supplier KLA on Wednesday forecast second-quarter revenue above Wall Street estimates, boosted by growing adoption of artificial intelligence tools that require sophisticated processors.
Shares of the Milpitas, California-based company rose 1.6 per cent to $462.01 in trading after the bell.
A large number of organizations have taken to generative AI tools this year, which has led to an increase in spending on high-end chips made by customers of KLA, such as Taiwan Semiconductor Manufacturing Co and Samsung Electronics.
This has driven demand for equipment to make and design chips benefiting KLA and its peers such as ASML and Applied Materials.
Meanwhile, the chips sector has become a focal point of trade tensions between the United States and China, forcing companies across the world to diversify their supply chains to reduce dependence on Chinese firms.
KLA expects fiscal second-quarter revenue of $2.45 billion, plus or minus $125 million. Analysts were expecting revenue of $2.41 billion, according to LSEG data.
The company reported revenue of $2.4 billion for the first quarter ended Sept. 30, compared with estimates of $2.36 billion.
It reported a profit of $741 million, down from $1.03 billion a year earlier.
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