Updated version 1 - Driven by strong demand for AI chips, Applied Materials expects quarterly revenue to exceed expectations

The full text has been supplemented with details.

Reuters, November 12 - Applied Materials (AMAT.O) on Thursday forecast that its first-quarter revenue would exceed Wall Street expectations, as the company anticipates that strong demand for advanced artificial intelligence chips will continue to drive spending on its semiconductor manufacturing equipment.

The shares of the Santa Clara, California-based company rose 3% in after-hours trading.

Applied Materials, which provides equipment for key wafer manufacturing processes, is benefiting from increased spending by chipmakers to fast-track AI infrastructure development.

According to data compiled by London Stock Exchange Group (LSEG), the company expects quarterly revenue of approximately $11.1 billion (plus or minus $500 million), compared with analysts’ average expectation of $10.89 billion.

The company reported fourth-quarter revenue of $10.41 billion, higher than the analysts’ average estimate of $10.3 billion.

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