(Reuters) -Semiconductor equipment maker Applied Materials on Thursday forecast first-quarter revenue above Wall Street estimates, helped by a recovery in the personal computer market and rising demand for artificial intelligence tools.
The company’s shares fell more than 6% after the bell following a Reuters report that Applied Materials is under U.S. criminal investigation for potentially evading export restrictions on China’s top chipmaker SMIC.
Recent earnings from Intel and Advanced Micro Devices have offered more evidence a recovery is gathering pace in the PC market, boding well for an industry that had been grappling with a supply glut after the pandemic.
Companies focusing on generative AI tools this year has also led to an increase in spending for Applied Materials’ equipment.
The Santa Clara, California-based company expects first-quarter revenue of about $6.47 billion, plus or minus $400 million, compared with analysts’ estimates of $6.37 billion, according to LSEG data.
Applied Materials reported fourth-quarter revenue of $6.72 billion, beating estimates of $6.52 billion.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shounak Dasgupta)
