Tokyo Electron Gives Cautious Outlook in Warning on AI Optimism

Tokyo Electron, a leading chipmaking equipment provider, reported robust Q3 results with operating income of $1.1 billion and sales of $63 billion, surpassing analyst expectations. However, a cautious full-year forecast of $586 billion has investors worried. The company faces challenges such as export controls limiting sales to China, China's push for homegrown technology, delayed orders, and reputational damage from a former employee's arrest. Despite these hurdles, Tokyo Electron's stock has still gained 35% this year, but lags behind competitors like Advantest. The company's future hinges on managing export controls, supply chain shifts, and the evolving demands of AI-driven chipmakers.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.