(Reuters) – Applied Materials Inc forecast third-quarter profit and revenue above estimates and reported better-than-expected quarterly results on Thursday, allaying investor concerns about slowing semiconductor demand.

Shares of the company rose nearly 6% in extended trading.

The semiconductor industry has been grappling with slowing demand that bellwether Texas Instruments warned was a cyclical downturn which could last for another two years.

Applied’s Chief Financial Officer Daniel Durn too said the chip market was expected to be flat for the year.

“While we’re still not ready to call the bottom of the semi equipment cycle, I believe our industry thesis is very much intact,” Durn said in a post-earnings conference call about the broader semiconductor industry.

Overall, however, the company expects to grow in 2019, with