Japanese chip testing equipment maker Advantest forecast a 6% increase in operating profit for the next fiscal year, driven by strong demand for its testing tools used in artificial intelligence applications. The company reported operating profit of 228.2 billion yen ($1.59 billion) for the year ended March 31, a significant jump from 81.6 billion yen in the previous fiscal year.

Advantest expects operating profit to reach 242 billion yen next fiscal year. The company also announced plans to buy back about 19 million shares for up to 70 billion yen. While acknowledging an increasingly uncertain business environment, the company stated it does not anticipate more than a minor direct impact from tariffs.

CEO Douglas Lefever emphasized a cautious approach, particularly regarding outlook beyond the first half of the year. Shares of Advantest closed up 4.6% ahead of the earnings announcement on Friday, though the stock has declined approximately 33% year-to-date.

The company's performance reflects growing demand for semiconductor testing equipment, especially for chips used in AI applications, positioning Advantest as a key player in this expanding market segment. ($1 = 143.2400 yen)