Applied Materials has forecast third-quarter revenue above Wall Street estimates, betting that heavy spending on data centres and AI infrastructure would sustain strong demand for its chip-making tools.

The world’s largest supplier of semiconductor manufacturing equipment, providing the machines and technology used to produce chips for electronics and AI, said it expects revenue of about $8.95 billion, plus or minus $500  million, for the current quarter, compared with estimates of $8.09 billion, according to data compiled by the London Stock Exchange Group.

Applied Materials, founded in 1967 by Michael McNeilly in California, ­reported that second-quarter revenue to April 26 was up 11 per cent at $7.91 billion, a record, against estimates of $7.65 billion.

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Net income rose 31 per cent to $2.8 billion, from $2.1 billion in the same three months a year ago.

Gary Dickerson, chief executive, said: “We now expect our semiconductor equipment business to grow more than 30 per cent in calendar 2026.”

The shares rose 4.9 per cent to $440.56 in after-hours trading following the results, released on Thursday night, leaving the stock 153 per cent higher over the past year.

Brice Hill, chief financial officer, said: “The growth in AI that Applied has been investing for is now in full force.”

The continuing AI boom is benefiting equipment suppliers such as ­Applied Materials, as building more powerful AI chips requires not only more silicon wafers but also more ­complex manufacturing processes.

Shares in Cisco Systems, the world’s largest supplier of wafer fabrication equipment for semiconductor manufacturers, rose by another 13.4 per cent yesterday to $115.53, a new record, after a 20 per cent jump in late trading on Wednesday, having reported hugely ­increased demand for its AI-linked ­networking equipment. The stock has risen by 88.5 per cent in the past 12 months.

Cisco has taken $5.3 billion in AI infrastructure orders from hyperscalers so far this fiscal year, and raised its full-year order expectation to $9 billion from $5 billion previously.

The company also said it would cut about 4,000 jobs, a bit less than 5 per cent of its global workforce. Chuck Robbins, chairman and chief executive, said the company needed to make “hard decisions” about how to capitalise on the AI opportunity.