Applied Materials Inc forecast fourth-quarter revenue above analysts’ estimates on Thursday as demand rebounds for semiconductor equipment and services from the coronavirus-driven slump, and predicted sustained spending into 2021.

Shares of the chip industry bellwether rose more than 3% in extended trading.

“While we’re mindful of potential macroeconomic headwinds, semiconductor equipment demand is strengthening and the longer-term industry growth drivers remain firmly in place,” Chief Executive Officer Gary Dickerson said on a post-earnings call.

The company expects current-quarter revenue to be about $4.60 billion, plus or minus $200 million, above analysts’ expectation of $4.36 billion, according to IBES data from Refinitiv.

Dickerson said current spending levels are expected to be sustained or even higher in 2021, based on feedback from customers.

The Santa Clara, California-based company had earlier predicted supply chains to gain strength during the second half of its fiscal year and help recoup sales lost due to the COVID-19 disruptions.

In May, Applied Materials flagged a nearly $650 million hit to sales from the pandemic-induced constraints.