KLA Corp forecasts strong quarterly revenue on AI-linked demand
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April 29 : KLA Corp forecast quarterly revenue above estimates on Thursday, banking on strong demand for its chipmaking tools as semiconductor manufacturers ramp up production of high-end processors for artificial intelligence.
Shares of the Milpitas, California-based company, however, fell more than 7 per cent in extended trading.
As of Wednesday's close, they had gained about 50 per cent this year, as rising demand for processors powering large language models and AI applications fueled spending on chipmaking equipment made by companies such as KLA Corp.
The company expects fourth-quarter revenue of $3.58 billion, plus or minus $200 million, compared with analysts' average estimate of $3.54 billion, according to data compiled by LSEG.
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It also forecast an adjusted profit of $9.87 per share for the period, plus or minus $1.00. Analysts expect a profit of $9.80 per share.
Last week, peer Lam Research had forecast fourth-quarter revenue above Wall Street estimates.
The soaring demand for complex AI chips has increased process-control intensity, ramping up the need for tools that can help ensure high production yields and manage costs as the chipmaking process becomes more difficult and precise.
KLA's tools are used for finding and fixing microscopic defects during the chipmaking process. Its services business, which provides maintenance and optimization for its equipment, also offers the company a recurring revenue stream.
Last month, the company announced a $7 billion share buyback program and a 21 per cent increase in its quarterly dividend.
KLA reported revenue of $3.42 billion in the third quarter, beating estimates of $3.37 billion. Adjusted profit came in at $9.40 per share, compared with estimates of $9.14.
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