Tokyo Electron sees robust profit growth amid jitters over AI returns

TOKYO: 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.