The outlook signals that the chip industry may be faring better than some had feared. Investors have grown increasingly concerned in recent weeks that the market is sliding into a slump, battered by too much inventory and weakening demand for electronic devices. Large customers such as Intel Corp. and Micron Technology Inc. have already cut their budgets for new plants and equipment following weak earnings reports.
Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, gave an upbeat sales forecast for the current period, saying it can weather the economic slowdown afflicting the industry.
Revenue will be about US$6.65 billion in the fiscal fourth quarter, which runs through October, the company said in a statement Thursday. Analysts estimated US$6.55 billion on average, according to data compiled by Bloomberg.
