Advantest Corp. raised its full-year profit forecast for the second time and sharply lifted mid-term financial goals, capitalizing on persistent demand for equipment to test artificial intelligence chips that shows no signs of cooling.
The Tokyo-based company now expects net income of ¥275 billion ($1.88 billion) for the year ending March 2026, up 71% from the previous year and 24% above its July projection. The firm also increased its three-year average sales target to ¥835-930 billion ($5.7-6.4 billion), up from an earlier ¥560-700 billion range.
Second-quarter results revealed operating margins hitting 44%, driven by test equipment for high-bandwidth memory and advanced logic chips used in AI data centers. Sales jumped 60% to ¥526.7 billion ($3.6 billion) in the first half.
The company raised its interim dividend to ¥29 per share from ¥19 a year earlier, though it stopped short of forecasting the full-year payout. While management cited strong customer demand for AI-related semiconductors, the outlook still assumes exchange rates of 140 yen per dollar—potentially conservative given recent fluctuations.
The revised targets reflect sustained momentum in AI chip production, though Advantest faces questions about whether current growth rates prove sustainable as the industry matures. Demand for testing equipment in automotive and industrial semiconductors remains weak, underscoring the concentration risk in AI-related revenues.
