Shares of Advantest Corp (TSE:6857) closed 2.2% up after Bernstein upgraded the stock to Outperform and named the company its new Top Pick within the semiconductor test equipment sector.
Bernstein highlighted several emerging demand drivers it believes will support Advantest's revenue trajectory. The broker pointed to expanded product lines from Nvidia as a source of greater test complexity, which should increase the need for advanced test equipment. In addition, Bernstein emphasized Advantest's position as a principal test provider in silicon photonics, with particular strength in PIC wafer testing.
The firm also flagged expected growth in demand for Vera CPUs as agentic AI use cases expand, a trend Bernstein sees as likely to lift tester requirements.
On specific forecasts, Bernstein increased its shipment projection for Advantest's EXA Scale tester to 2,000 units in 2026, up from its prior forecast of 1,770 units. The broker noted that this figure would represent 61% year-on-year growth. Separately, Bernstein expects Advantest's system-on-chip (SoC) tester revenue to expand by 39%, above consensus estimates of 36%.
Bernstein pointed to strengthening demand for ASIC accelerator testers, attributing that strength in part to higher chip shipments by cloud and hyperscale customers. The broker cited increased volumes being shipped from Google and Amazon to buyers including Anthropic and Meta as a catalyst for that demand. Looking further ahead, Bernstein projects EXA Scale tester shipments to rise to 2,350 units in the 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.
The note from Bernstein also mentioned Groq LPU chips, described as recently added to the Nvidia family, which the firm expects will contribute to tester demand next year as their adoption for inferencing expands.
Overall, the upgrade and Top Pick designation from Bernstein reflect the broker's view that multiple product and customer trends - ranging from silicon photonics and Vera CPUs to ASIC accelerators and Groq LPU additions - are likely to support stronger tester demand for Advantest in coming years.