- Advantest raised its profit forecast for fiscal 2024, expecting operating profit to grow 20%
- The strong demand for AI-related chips has driven the demand for semiconductor test equipment
What happened
Japanese test equipment manufacturer Advantest Corporation announced on Wednesday that it has raised its operating profit forecast by 20% to 100 billion yen (about 635 million dollar) for fiscal year 2024. The decision comes as AI-related chips are widely tested for applications in areas such as data centers and cloud computing, which in turn drives strong demand for efficient test equipment.
Advantest noted that the widespread demand of AI-related chips is driving the need to test its devices. Especially in high-performance computing and storage solutions. In this case, Advantest’s profit forecast is positive. Its operating profit tripling year-on-year to 63.6 billion yen in the quarter. In addition, the Advantest shares have risen nearly 80% so far this year. The demand for AI-related chips equipment is expected to continue to increase significantly through 2025. This may further contributing to the growth of the company’s business.
Also read: Advantest hikes profit forecast as AI boosts testing demand
Also read: Japan’s Advantest ups FY profit outlook by 53% on stronger chip tester demand
What it’s important
It is worth noting that Advantest’s earnings forecast adjustment is not only the result of internal factors in the company, but also a microcosm of the development trend of the entire technology industry. According to market research firm Gartner, the global demand for AI-related semiconductor devices is expected to grow by 35% by 2025. This means unprecedented growth opportunities for companies like Advantest. At the same time, this may also driving technological advances across the test equipment industry.
In addition, Advantest’s success has inspired other small businesses to actively innovate. For example, Silicon Valley-based start-up company TestAI is now developing AI-based testing solutions to automate and accuracy the testing process. These companies draw on Advantest’s success story, actively investing resources in research and development of new technologies, and strive to gain a place in the competition.
It can be found that driven by AI technology, the test equipment industry will continue to transform, pushing companies to more effectively respond to market challenges. Advantest’s positive attitude in this process has undoubtedly set a good example for other companies to drive the industry forward.
