Tokyo Electron sees robust profit growth amid jitters over AI returns
SMH•Tokyo Electron forecast operating profit to rise 87% to 1.17 trillion yen, above expectations, and said it would spend up to 150 billion yen to buy back about 25 million shares.
1. Profit forecast rises
Tokyo Electron forecast an 87% jump in operating profit to 1.17 trillion yen, above expectations, citing robust demand for chipmaking equipment driven by the AI boom. CFO Hiroshi Kawamoto said customer interest was very strong and that there were no signs of it slowing.
2. Share buyback plan
The company said it would spend up to 150 billion yen to buy back about 25 million shares. Its shares closed down 5% ahead of the earnings announcement.
3. AI spending concerns
The forecast came as investors questioned whether heavy spending on AI infrastructure would deliver adequate returns. Technology stocks in Asia, including SK Hynix, TSMC and Advantest, came under pressure.
