Qnity raises annual revenue forecast as AI spending climbs
Qnity Electronics Q | 0.00 |
May 11 (Reuters) - Semiconductor solutions provider Qnity Electronics Q.N raised its annual revenue and profit forecast on Tuesday, driven by demand for artificial intelligence and high-performance computing.
Shares of the company gained over 3% in premarket trading.
Demand for semiconductor equipment is surging on AI infrastructure spending, boosting suppliers like Qnity, which makes chips, advanced packaging, interconnects and thermal management products for data centers.
Qnity expects full-year revenue in the range of $5.23 billion to $5.38 billion, up from its earlier projection between $4.97 billion to $5.17 billion. Analysts, on average, estimate annual revenue of $5.12 billion, according to data compiled by LSEG.
Adjusted profit is expected to be between $3.80 and $4.14 per share, compared with its previous forecast of $3.55 to $3.95.
The Wilmington, Delaware-based company was spun off from industrial materials maker DuPont DD.N in October and began trading as an independent public company in November.
For the first quarter, Qnity posted revenue of $1.32 billion, beating estimates of $1.27 billion.
Adjusted profit came in at $1.08 per share, compared with estimates of 92 cents per share for the quarter ended March 31.
