Chip Equipment Maker KLA Tops Q3 Estimates, Benefiting from AI Demand
KLA Corp., a leading chipmaking equipment supplier, surpassed Wall Street's expectations in its third-quarter financial forecast. The company anticipates strong revenue driven by robust demand for advanced chips supporting artificial intelligence workloads.
Milpitas, California-based KLA's shares surged 3.9% in after-hours trading.
Major investments in high-performance computing chips by industry giants like Taiwan Semiconductor Manufacturing Co., KLA's largest customer, are expected to drive chipmaking tool orders. KLA provides sophisticated equipment, software, and services for fabricating wafers, integrated circuits, and semiconductor components worldwide.
"Despite navigating the business impact of recently implemented U.S. export controls," CEO Rick Wallace said, "KLA delivered positive results."
U.S. export curbs targeted 140 Chinese companies in the semiconductor industry in December.
KLA projects third-quarter revenue between $3 billion, with a margin of $150 million. Analysts anticipate an average of $2.89 billion, based on LSEG data. The company also forecasts adjusted earnings per share of $8.05, plus or minus 60 cents, for the quarter ending March, exceeding estimates of $7.51.
In the second quarter, KLA reported revenue of $3.08 billion, meeting analysts' projections.