Nvidia supply chain releases positive signals! Testing giant Advantest's profit forecast soars by 70%, potentially becoming a catalyst for sentiment reversal in the AI sector

According to Zhicheng Finance APP, Japanese semiconductor testing giant Advantest has raised its outlook above expectations due to strong demand from AI data centers for testing equipment needed to manufacture increasingly complex chips. The supplier of equipment used to detect defects in Nvidia chips stated that it now expects operating profit to grow by 70% in the fiscal year ending next March, up from a previously forecast 26% increase. Analysts’ average expected growth rate was 42%.

In the quarter ended June, the Tokyo-based company reported that its operating profit rose by 53% to 190 billion yen (about $1.2 billion), while analysts were expecting an increase of 28%. Revenue rose 39%, beating expectations.

Kazuhiro Saito, Senior Analyst at Iwai Cosmo Securities, commented: "The scale of the adjustment to performance expectations far exceeded forecasts, leaving a very positive impression on the market. Although AI-related stocks have not been popular recently, I believe this could become a catalyst for a turnaround and help dispel some of the pessimism surrounding the industry."

As semiconductor manufacturers seek to reduce defect rates in advanced logic and memory chips required by AI data centers, demand for Advantest’s testing equipment is surging. Company executives previously predicted that this investment boom would last at least a few more years.

Since reaching its all-time high in June this year, Advantest’s share price has dropped about 30%. Year-to-date, its share price is still up approximately 28%.