KLA Corp, a prominent player in the chip-making equipment industry, has forecasted its fiscal first-quarter revenue and profit above market expectations following a robust performance in the preceding quarter. The announcement, made on Wednesday, propelled its shares up by 3% in after-hours trading.
The surge in AI applications is driving demand for high-end chips, benefiting not only chip producers but also ancillary suppliers like KLA. "We are encouraged by the early signs of a strengthening market environment for our customers at the leading edge and are increasingly confident in our plan for steady improvement throughout the remainder of this calendar year and into 2025," said CEO Rick Wallace.
KLA anticipates its current quarter revenue to be $2.75 billion, plus or minus $150 million, surpassing analysts' expectations of $2.62 billion, according to LSEG data. Additionally, the company projects an adjusted earnings range with a mid-point of $7 per share, exceeding the consensus estimate of $6.50.
Based in Milpitas, California, KLA manufactures tools used to inspect silicon wafer discs for defects and serves major chip producers, including Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics. TSMC, the world's largest contract chipmaker and an industry bellwether, recently raised its full-year revenue forecast, highlighting the increasing demand for chips used in AI workloads.
For the quarter ending June 30, KLA reported a revenue increase of just over 9% to $2.57 billion, compared to expectations of $2.52 billion. The company's adjusted per-share profit stood at $6.60, above the forecasted $6.15.
Despite facing U.S. government restrictions on exporting certain technologies to China, KLA reported a rise in revenue contribution from the country, increasing to 44% from 30% a year ago, as per the company's earnings presentation.
KLA's optimistic outlook and strong financial performance underscore the escalating demand for AI-related technologies and the pivotal role of ancillary suppliers in supporting the chip industry's growth.
