Reuters
Applied Materials forecasts strong Q1 revenue on easing supply chain woes
(Reuters) -Chip tools maker Applied Materials Inc on Thursday forecast first-quarter revenue above market estimates, on hopes that easing supply chain constraints will help it meet pent up demand from chipmakers ramping up production. The company’s results come at a time when the wider chip industry is seeing sluggish demand for consumer electronics like PCs and smart phones, with chipmakers like Intel Corp and Advanced Micro Devices Inc providing weak outlook. “Applied’s performance reflects the past strength in semiconductor demand where industry capacity was unable to fulfill demand,” said Kinngai Chan, an analyst at Summit Insights Group, adding that existing strong backlog continues to drive near-term financial performance for the company.
