KLA Corp projects quarterly revenue above estimates as AI fuels chip demand

By Thomson Reuters Apr 25, 2024 | 4:11 PM

(Reuters) – KLA Corp forecast fourth-quarter revenue above analysts’ expectations on Thursday, anticipating strong demand for its chip-making tools from semiconductor makers looking to tap into a surge in demand for use in AI applications.

Shares of the Milpitas, California-based company rose more than 2% in extended trading.

KLA forecast revenue in the range of $2.50 billion, plus or minus $125 million, compared with estimates of $2.42 billion, according to LSEG data.

Orders for chip equipment makers such as KLA have been boosted by enterprises dialing up spending on high-end chips to power AI servers and applications to improve their infrastructure.

TSMC, the world’s largest contract chipmaker, had said earlier this month that it expects quarterly sales to grow as much as 30%. Peer Lam Research also forecast upbeat quarterly revenue on Wednesday.

KLA expects adjusted diluted earnings per share of $6.07, plus or minus 60 cents, compared with estimates of $5.68 per share.

The company reported third-quarter revenue of $2.36 billion, beating the average analyst estimate of $2.31 billion.

KLA reported earnings per share of $4.43, compared with $5.03 a year earlier.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)