Advertisement
Singapore markets closed
  • Straits Times Index

    3,297.55
    -26.98 (-0.81%)
     
  • Nikkei

    38,814.56
    +94.09 (+0.24%)
     
  • Hang Seng

    17,941.78
    -170.85 (-0.94%)
     
  • FTSE 100

    8,146.86
    -16.81 (-0.21%)
     
  • Bitcoin USD

    66,325.98
    +171.83 (+0.26%)
     
  • CMC Crypto 200

    1,375.14
    -42.74 (-3.01%)
     
  • S&P 500

    5,431.60
    -2.14 (-0.04%)
     
  • Dow

    38,589.16
    -57.94 (-0.15%)
     
  • Nasdaq

    17,688.88
    +21.32 (+0.12%)
     
  • Gold

    2,348.40
    +30.40 (+1.31%)
     
  • Crude Oil

    78.49
    -0.13 (-0.17%)
     
  • 10-Yr Bond

    4.2130
    -0.0250 (-0.59%)
     
  • FTSE Bursa Malaysia

    1,607.32
    -2.85 (-0.18%)
     
  • Jakarta Composite Index

    6,734.83
    -96.73 (-1.42%)
     
  • PSE Index

    6,383.70
    -7.13 (-0.11%)
     

Top Chipmakers Forecast Revenue Growth as AI and Consumer Product Demand Rebounds: Report

Top Chipmakers Forecast Revenue Growth as AI and Consumer Product Demand Rebounds: Report
Top Chipmakers Forecast Revenue Growth as AI and Consumer Product Demand Rebounds: Report

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) supplier Applied Materials Inc (NASDAQ:AMAT) will likely gain revenue this quarter, as shown by company and market forecasts, indicating a reversal in the global market downturn.

Eight out of nine leading device makers are on track to exceed last year’s quarterly revenue, contrasting the previous quarter, where six out of nine saw sales decrease, the Nikkei Asia reports.

This shift results from increased AI demand and China’s efforts to build a self-sufficient chip industry. Demand related to smartphones and other consumer products will likely rebound.

ADVERTISEMENT

Applied Materials recently projected revenue between $6.25 billion and $7.05 billion for the May-July quarter.

Applied Materials clients have increased factory utilization rates, and demand for equipment used in manufacturing DRAM memory semiconductors is growing.

Optimism about AI-related demand drives these optimistic forecasts. Applied Materials, in particular, cited high bandwidth memory used in generative AI computing.

Analysts flagged the company as a long-term share gainer thanks to Logic/Foundry (i.e. Gate-All-Around) and DRAM (i.e. HBM) rebound backed by the data center market.

Tokyo Electron will likely boost revenue by around 30% in the April-June quarter, based on market forecasts. Investment in servers for AI development and operations will play a significant role.

Tokyo Electron anticipates the global market for front-end chipmaking processes to grow 5% this year to $100 billion.

Dutch competitor ASML Holding NV (NASDAQ:ASML) is the exception among the nine companies with a negative quarterly forecast, but expecting a stronger recovery in demand in the second half of the fiscal year.

Earnings for chipmakers and chipmaking device manufacturers fell short of high market expectations during the January-March quarter, leading to a sector sell-off.

Price Action: AMAT shares are trading higher by 2.50% at $223.60 premarket at the last check on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!

Get the latest stock analysis from Benzinga?

This article Top Chipmakers Forecast Revenue Growth as AI and Consumer Product Demand Rebounds: Report originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.