Lam Research forecasts quarterly revenue above estimates on AI chip demand
Oct 23 (Reuters) -Lam Research LRCX.O forecast revenue for the December quarter above Wall Street expectations on Wednesday, as chipmakers ordered more of its equipment used to manufacture semiconductors for artificial intelligence applications.
Shares of the Fremont, California-based company rose 5% in trading after the bell.
Businesses across sectors have been racing to incorporate AI capabilities after OpenAI's ChatGPT caught the attention of consumers and investors alike, benefiting companies like Lam.
The AI boom has also helped chipmakers cushion a post-pandemic downturn in demand for personal computers and smartphones.
Lam, Applied Materials AMAT.O and Dutch firm ASML ASML.AS are among the few main suppliers of wafer fabrication equipment — sophisticated and expensive machinery used to make semiconductors.
The company expects revenue for the current quarter ending Dec. 29 at $4.30 billion, plus or minus $300 million, compared with analysts' estimate of $4.24 billion, according to data compiled by LSEG.
Lam posted revenue of $4.17 billion for the three months ended Sept. 29, beating estimates of $4.05 billion.
Reporting by Juby Babu in Mexico City; editing by Alan Barona
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