Semiconductor equipment maker Applied Materials forecast third-quarter results largely above Wall Street estimates on Thursday, indicating robust demand fueled by an artificial intelligence boom.

The company has benefited from growing demand for wafer fabrication equipment, which are sophisticated and expensive machinery to make semiconductors, as its customers are investing heavily to produce AI chips.

A surge in the requirement of high-performance computing and data centers has also driven demand for memory semiconductors such as dynamic random access memory (DRAM) and flash memory, helping chip tools suppliers.

DRAM is used extensively in data centers, personal computers, smartphones and other computing devices.

Applied Materials expects third-quarter revenue of about $6.65 billion, plus or minus $400 million, compared with analysts' estimates of $6.58 billion, according to LSEG data.

The company forecast third-quarter adjusted profit per share to be between $1.83 and $2.19, compared with estimates of $1.98.

Santa Clara, California-based Applied Materials reported second-quarter revenue of $6.65 billion, ahead of estimates of $6.54 billion.

On an adjusted basis, the company earned $2.09 per share, compared with estimates of $1.99.

  - Reuters