UPDATE 1-Applied Materials sees upbeat quarterly revenue on sustained AI spending

Applied Materials, Inc.

Applied Materials, Inc.

AMAT

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Adds shares, details

May 14 (Reuters) - Applied Materials AMAT.O on Thursday forecast third-quarter revenue above Wall Street estimates, betting that heavy spending on data centers and AI infrastructure would sustain strong demand for its chip-making tools.

Shares of the Santa Clara, California-based company rose 6% in extended trading.

The ongoing AI boom is benefiting equipment suppliers such as Applied Materials, as building more powerful AI chips requires not only more silicon wafers but also more complex manufacturing processes.

The company expects revenue of about $8.95 billion, plus or minus $500 million, for the current quarter, above analysts' average estimate of $8.09 billion, according to data compiled by LSEG.

For the second quarter ended April 26, Applied reported revenue of $7.91 billion, beating analysts' average estimate of $7.65 billion.



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