(Reuters) – KLA Corp forecast revenue and profit for its fiscal first quarter above expectations after posting better-than-expected results for the preceding three months on Wednesday, sending its shares up 3% in after-hours trading.
A surge in AI applications is driving demand for high-end chips benefiting a battery of chip producers as well as ancillary suppliers such as KLA.
“We are encouraged by the early signs of a strengthening market environment for our customers at the leading edge and are increasingly confident in our plan for steady improvement throughout the remainder of this calendar year and into 2025,” CEO Rick Wallace said.
The chip-making equipment maker expects its current quarter revenue at $2.75 billion, plus or minus $150 million. Analysts were expecting $2.62 billion according to LSEG data.
It also projected an adjusted earnings range with a mid-point of $7 per share, exceeding analysts’ consensus estimate of $6.50
Milpitas, California-based KLA manufactures tools used to inspect silicon wafer discs for defects and counts major chip producers, including Taiwan Semiconductor Manufacturing Co and Samsung Electronics as its customers.
TSMC, the world’s largest contract chipmaker and an industry bellwether, raised its full-year revenue forecast last week, underscoring the surging demand for chips used for AI workloads.
In the quarter ended June 30, KLA’s revenue rose just over 9% to $2.57 billion, compared to expectations of $2.52 billion.
Adjusted per share profit was at $6.60, above the expectations of $6.15.
KLA, which is one of the U.S. firms facing a government curb on exports of certain technologies to China, reported that its revenue contribution from the country rose to 44% from 30% a year ago, according to the company’s earnings presentation.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Tasim Zahid)
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