Advantest Calls AI Chip Demand a “Megacycle”

Advantest Group CEO Douglas Lefever said at an earnings briefing on October 28 that the AI semiconductor market was in a high-growth phase he called a “megacycle,” exceeding a “supercycle” of sustained demand growth. The company’s fiscal 2026 second-quarter results, announced the same day, showed record revenue of ¥477.7 billion, up 81.7% year over year, and operating profit of ¥266.8 billion, up 146.0%. Net profit rose 142.7% to ¥193.3 billion.

After the strong second-quarter results, Advantest raised its full-year forecast from the outlook it gave in July. For fiscal 2026, it expects revenue of ¥1.863 trillion and operating profit of ¥967 billion. It also announced a share buyback of up to ¥280 billion.

The company attributed the strong results to the AI boom, which has increased demand for semiconductor testing equipment used for GPUs and CPUs. Advantest expanded production capacity for its system-on-chip (SoC) test systems, which test chips combining multiple integrated circuits in one package. It expects to reach its annual production target of 10,000 units well ahead of schedule, contributing to the higher full-year forecast.

During the earnings briefing’s question-and-answer session, Lefever said he saw changes in semiconductor demand accompanying the AI boom. On optoelectronic convergence, he said there were markets growing at “two or three times the speed.” Advantest, whose equipment handles the final testing stage before semiconductors are shipped, outlined demand linked to AI and market trends that include optoelectronic convergence.

Advantest Group CEO Douglas Lefever said at an earnings briefing on October 28 that the AI semiconductor market was in a high-growth phase he called a “megacycle,” exceeding a “supercycle” of sustained demand growth. The company’s fiscal 2026 second-quarter results, announced the same day, showed record revenue of ¥477.7 billion, up 81.7% year over year, and operating profit of ¥266.8 billion, up 146.0%. Net profit rose 142.7% to ¥193.3 billion.

After the strong second-quarter results, Advantest raised its full-year forecast from the outlook it gave in July. For fiscal 2026, it expects revenue of ¥1.863 trillion and operating profit of ¥967 billion. It also announced a share buyback of up to ¥280 billion.

The company attributed the strong results to the AI boom, which has increased demand for semiconductor testing equipment used for GPUs and CPUs. Advantest expanded production capacity for its system-on-chip (SoC) test systems, which test chips combining multiple integrated circuits in one package. It expects to reach its annual production target of 10,000 units well ahead of schedule, contributing to the higher full-year forecast.

During the earnings briefing’s question-and-answer session, Lefever said he saw changes in semiconductor demand accompanying the AI boom. On optoelectronic convergence, he said there were markets growing at “two or three times the speed.” Advantest, whose equipment handles the final testing stage before semiconductors are shipped, outlined demand linked to AI and market trends that include optoelectronic convergence.