Applied Materials forecast second-quarter revenue and profit above market estimates Thursday, betting on a boom in demand for AI processors to help drive sales of its chipmaking equipment, sending its shares up 9% in extended trading.

The largest U.S. semiconductor equipment maker, Applied Materials, has benefited from relentless demand for AI chips, as chip manufacturers expand production capacity.

The company is also expected to cash in on a worldwide memory shortage, with memory providers boosting investment in increasing their manufacturing capacity.

Applied Materials expects second-quarter sales of about $7.65 billion, plus or minus $500 million, compared with estimates of $7.01 billion, according to data compiled by LSEG.

The company expects second-quarter adjusted profit of about $2.64 per share, plus or minus 20 cents, compared with estimates of profit of $2.28.