Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump

July 28 (Reuters) – Chip-testing equipment maker Teradyne forecast third-quarter revenue above Wall Street estimates on Tuesday, betting on a sustained rise in investment in wafer fabrication equipment, sending the company’s shares up 13.5% in extended trading.

Growing demand for more complex and powerful chips used in AI data centers and vehicles has driven the need for sophisticated, higher-priced testing equipment, benefiting suppliers such as Teradyne.

The company is a supplier of automated test equipment used to verify the quality and reliability of semiconductors.

Here are some details:

• Teradyne expects third-quarter revenue between $1.20 billion and $1.30 billion, ahead of analysts’ average estimate of $1.04 billion, according to data compiled by LSEG.

• It forecast adjusted earnings in the range of $1.85 to $2.15 per share for the quarter, also ahead of an estimate of $1.53.

• “Looking further ahead, rapid increase in wafer fab equipment investment sets the stage for continued growth in 2027 and beyond,” CEO Greg Smith said in a statement.

• The company’s second-quarter revenue more than doubled to $1.33 billion, beating estimates of $1.22 billion.

• Adjusted profit came in at $2.47 per share, compared with an estimate of $2.09.

(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)