July 26 (Reuters) – Chip-making tools supplier Lam Research (LRCX.O) forecast quarterly revenue above Wall Street estimates, as semiconductor makers scramble to meet a surge in demand fueled by rising adoption of artificial intelligence (AI) technology.
Shares of the company rose about 2% in trading after the bell.
Businesses across sectors have been racing to incorporate AI capabilities after OpenAI’s ChatGPT caught the attention of consumers and investors alike, benefiting companies like Lam that are essential to the chip supply chain.
The company expects first-quarter revenue of $3.4 billion plus or minus $300 million, above expectations of $3.3 billion, according to IBES data from Refinitiv.
Lam, Applied Materials (AMAT.O) and Dutch firm ASML (ASML.AS) are among a few key suppliers of wafer fabrication equipment (WFE) – sophisticated and expensive machinery used to make semiconductors.
The AI boom has also helped chipmakers cushion a post-pandemic downturn in demand for personal computers and smartphones.
Lam reported fourth-quarter revenue of $3.21 billion, lower than $4.64 billion last year but above market expectations of $3.13 billion.
Excluding items, the company posted a profit of $5.97 per share, compared with estimates of $5.07.
Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath
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