In Tokyo on January 29, Japan's Advantest announced a 37% increase in its full-year operating profit forecast, attributing the boost to robust demand for its chip testing tools in artificial intelligence applications.
CEO Douglas Lefever highlighted, "We have experienced a surge in demand for AI-centric, high-performance semiconductor testers."
The company projects an operating income of 226 billion yen ($1.46 billion) for the fiscal year ending on March 31.
Lefever noted, "Our focus on enhancing supply chain management to meet the delivery needs of HPC and AI clients has facilitated our accelerated production pace."
In the October-December quarter, operating income surged by 158% to reach 69.2 billion yen.
Advantest, along with other stocks, weathered recent market volatility following the unveiling of an AI model by Chinese startup DeepSeek, prompting concerns among investors about the future of AI investments.
Lefever reassured stakeholders, stating, "To date, our clients have not indicated any adjustments to their projections."
He emphasized that the ongoing advancement of AI technologies, encompassing various AI models, promises a favorable long-term impact on semiconductor demand and testing.
(Note: Exchange rate provided: $1 = 155.2000 yen)