Advantest (ATEYY) $124 announced great results pre-market, increasing guidance for the full year.

I have posted trade alerts on Advantest several times - it sells Automated Test Equipment (ATE) for semiconductors, and has clients across the spectrum, including Nvidia, AMD and Micron. It’s a great long-term core holding, and has done very well for me.

Results 1H of 2025

• Revenue at 526Bn Yen was 60% higher YoY
• Operating Income at 230Bn Yen was 149% higher YoY - Fantastic leverage/pricing.
• Net Income 169Bn Yen 145% higher YoY.

Guidance for the year ended March 2026.

• Revenue 950Bn Yen 22% growth YoY raised from 835Bn Yen
• Operating income 374Bn Yen, 63% growth YoY raised from 300Bn Yen
• Net Income 275Bn Yen 71% growth YoY, raised from 222Bn Yen

Advantest expects to earn 378 Yen per share for the year ended March 2026, translating to $2.49 per share. From this base, given how strong demand is for AI/High performance computing equipment, testing should also follow suit, and I expect earnings to increase 20-22% for the next two years, and revenue to grow in the low to mid teens.

Valuation.

We had posted the recommendation and buy alerts in April at $37, and in Sep $72.25.

At this price, I would prefer to hold - ATEYY is selling at 50x earnings per share, I don’t want to chase it, but it will remain a core long-term holding.