Key facts
- Operating profit forecast to jump 87% to 1.17 trillion yen ($7.41 billion).
- Company sees strong demand for chipmaking equipment due to AI boom.
- Plans to buy back up to 150 billion yen of shares.
Tokyo Electron forecast an 87% jump in operating profit to 1.17 trillion yen ($7.41 billion) on Friday, driven by strong demand for chipmaking equipment fueled by the AI boom. Despite growing investor concerns over the returns on heavy AI infrastructure spending, which led to overnight drops in Alphabet, Intel, and Amazon, the Japanese chip equipment maker sees no signs of slowing demand.
Chief Financial Officer Hiroshi Kawamoto stated that customer interest remains very strong. The company also announced plans to buy back up to 150 billion yen of its shares. This upbeat outlook contrasts with broader market jitters that pressured technology stocks across Asia, including SK Hynix and TSMC.