Chip-testing machine manufacturer, Teradyne, reported better-than-expected sales and profit in the second quarter, driven by increasing Demand for semiconductors essential for artificial intelligence (AI) technology. Despite weaker robotics demand, higher shipments in Teradyne’s core semiconductor-test segment fueled their success.

The company’s shares rose 1.8% in after-hours trading, buoyed by their third-quarter revenue forecast of between $650 million to $710 million, surpassing analysts’ estimates. While demand from data centers and automotive end-markets is projected to remain strong, order rates in the robotics sector may decline.

The surge in demand for AI capabilities has been beneficial for companies in the chip supply chain, counteracting the post-pandemic decline in sales of personal computers and smartphones.

Teradyne provides chip testing technology to customers such as chipmaker Taiwan Semiconductor Manufacturing Co, chip designer Qualcomm, and electronics firm Samsung. They also supply robotic systems to customers in the manufacturing sector.

While revenue for the quarter ended July 2 decreased to $684.4 million from $840.8 million the previous year, it still exceeded expectations. Teradyne earned 79 cents per share on an adjusted basis, surpassing estimates.

Teradyne’s strong performance reflects the ongoing demand for semiconductors, particularly in the AI sector, which has become increasingly integral to various industries.

The post Teradyne Exceeds Expectations in Q2 Amid Growing Demand for Semiconductors appeared first on TS2 SPACE.