Key insights
- Bernstein upgraded Advantest to Outperform, citing growth drivers in semiconductor testing, particularly related to Nvidia's expanded product lines and AI. Increased demand from Google and Amazon for ASIC accelerator testers also contributes. This positive outlook for a key semiconductor equipment supplier suggests continued strength in the broader chip market, indirectly benefiting US equities exposed to the sector.
Investing.com -- Advantest Corp (TSE:6857) shares closed 2.2% higher following an upgrade to Outperform from Bernstein, citing emerging growth drivers across the semiconductor testing market. The broker also named Advantest its new Top Pick in the sector.
The Japanese test equipment maker stands to benefit from Nvidia’s expanded product lines with increased test complexity, according to Bernstein. The firm highlighted Advantest’s position as a major test provider for silicon photonics, particularly for PIC wafer testing, and noted that Vera CPU demand is expected to surge with agentic AI.
Bernstein raised its forecast for Advantest’s EXA Scale tester shipment to 2,000 units in 2026, up from 1,770 units previously, representing 61% YoY growth. The firm expects Advantest to grow its SoC tester revenue by 39%, compared to consensus estimates of 36%.
The upgrade also pointed to strengthening ASIC accelerator tester demand, driven by increased chip shipments from Google and Amazon to companies including Anthropic and Meta. Bernstein projects further growth to 2,350 units in fiscal year ending March 2028.
"Die level testing and China GPU testing present further upside, while share loss to Teradyne seems manageable given the new growth drivers," Bernstein analysts commented.
The firm also noted that Groq LPU chips, recently added to the Nvidia family, will contribute to tester demand next year as adoption for inferencing expands.
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