Tokyo Electron Ltd. Shares Gain After It Raises Earnings Guidance

By Kosaku Narioka

Tokyo Electron Ltd. shares rose sharply after it raised fiscal-year earnings forecasts, citing a recovery in capital expenditures for chip-making equipment.

Shares were 10% higher at 32,830 yen in morning Tuesday trade after rising as much as 12% earlier. Markets in Japan were closed on Monday for a holiday.

Tokyo Electron said Friday after market close that capital investment in semiconductor-production equipment showed signs of bottoming out with inquiries about equipment for generative artificial-intelligence applications increasing.

Capital investment in China remained strong as the country aims to be more self-sufficient in the production of chips used for the Internet of Things, automotive and industrial applications, the company said.

Tokyo Electron, which makes semiconductor production equipment, now expects a net profit of Y340.00 billion ($2.28 billion) for the fiscal year ending March, versus its earlier projection of Y307.00 billion.

Fiscal-year revenue is now projected at Y1.830 trillion, higher than its previous view of Y1.730 trillion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 12, 2024 21:10 ET (02:10 GMT)

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