Japan's largest chipmakers posted mostly positive September-quarter earnings driven by artificial intelligence demand, though stock reactions were mixed.
Advantest and Tokyo Electron both beat expectations and raised guidance. Advantest lifted its fiscal 2027 operating profit forecast to ¥967 billion from ¥846 billion, with first-half revenue up 60.5% and operating profit up 96.5%. Management cited AI chip test demand growing faster than expected. Tokyo Electron guided operating profit up 87% to ¥1.17 trillion and announced a ¥150 billion buyback. Its CFO stated there are "no signs that this is slowing down."
Kioxia, Disco, and Renesas declined on the trading day despite mixed-to-strong prints.
The bull case centers on AI test and equipment demand beating forecasts. The bear case points to valuations such as Advantest's 45.3x trailing price-to-earnings ratio leaving little room if AI capital expenditure growth slows. Investors are now searching for signs of where growth will decelerate.