TOKYO, Oct 30 (Reuters) – Tokyo Electron on Friday forecast a stronger-than-expected 87% jump in operating profit to 1.17 trillion yen ($7.41 billion), underscoring robust demand for chipmaking equipment driven by the AI boom.
The upbeat forecast comes despite growing investor concerns over whether heavy spending on AI infrastructure will deliver adequate returns, after Alphabet, Intel and Amazon all fell overnight amid continued high capital expenditure.
The caution spread to Asia on Friday, with technology stocks including South Korea’s SK Hynix, Taiwan’s TSMC and Japan’s Advantest coming under pressure.
“In the various conversations we are having with our customers, interest is very strong,” Tokyo Electron Chief Financial Officer Hiroshi Kawamoto told reporters.
“At present, there are no signs that this is slowing down.”
Despite concerns about AI-related spending, Asian suppliers of chips and semiconductor equipment continue to report strong results. SK Hynix said this week it would return about $75 billion to shareholders as higher memory prices boost profits.
Tokyo Electron, a major supplier of equipment for processes such as deposition and etching to chipmakers, said it would spend up to 150 billion yen to buy back some 25 million shares. Its shares closed down 5% ahead of earnings.
($1 = 157.8500 yen)
(Reporting by Sam Nussey; Editing by Subhranshu Sahu)
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