- Wednesday, October 16, 2024
Tokyo Electron Ltd. experienced a significant surge in their shares recently, following an increase in their fiscal-year earnings forecasts. The company cited a recovery in capital expenditures for chip-making equipment as the main contributing factor to this positive development.
In morning Tuesday trade, Tokyo Electron's shares were up by 10% at 32,830 yen, having risen as much as 12% earlier. It's worth noting that the Japanese markets were closed on Monday due to a public holiday.
Last Friday, after the market closed, Tokyo Electron announced that there were promising signs of capital investment in semiconductor-production equipment. The company noticed a rise in inquiries about equipment for generative artificial-intelligence applications, indicating a potential bottoming out of this market segment.
Furthermore, capital investment in China has remained robust as the country strives for greater self-sufficiency in the production of chips used for various applications such as the Internet of Things, automotive, and industrial sectors.
Consequently, Tokyo Electron now expects a net profit of Y340.00 billion ($2.28 billion) for the fiscal year ending in March, surpassing its previous projection of Y307.00 billion. Additionally, the company's fiscal-year revenue is now estimated at Y1.830 trillion, higher than its previous view of Y1.730 trillion.
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