UPDATE 1-Applied Materials beats quarterly revenue estimates

(Adds details from release, background, estimates)

Nov 14 (Reuters) - Applied Materials topped Wall Street estimates for fourth-quarter revenue on Thursday, as the chip gear maker's semiconductor business benefited from higher demand for processor chips.

Shares of Applied Materials, whose results are often seen as a barometer for the semiconductor industry, rose 4% in extended trading.

The company forecast first-quarter revenue to be about $4.10 billion, plus or minus $150 million, above analysts' estimates of $3.71 billion, according to IBES data from Refinitiv.

Applied Material's top customers, Apple supplier TSMC and chipmaker Intel Corp, earlier reported better-than-expected quarter results driven by strong demand for faster mobile chips and sales to data centers.

The company said sales from China, its largest market, increased 5.5% to $1.20 billion in the quarter, contributing 32% to the overall revenue.

Revenue from the company's largest business, semiconductor systems, which supplies gears for chip makers, rose 2.5% to $2.30 billion.

Revenue fell 0.1% to $3.75 billion for the quarter ended Oct. 27, but beat analysts' estimates of $3.68 billion, according to IBES data from Refinitiv.

Net income fell to $698 million, or 75 cents per share, from $757 million, or 77 cents per share, a year ago.

Excluding items, the company earned 80 cents per share, above analysts' estimates of 76 cents. (Reporting by Ayanti Bera in Bengaluru; Editing by Amy Caren Daniel)