Want to see ATEYY full AI Analyst Report?
Top Page
Advantest
(OTC:ATEYY)
Select Model
Select Model
Rating:79Outperform
Price Target:
$258.00
▲(19.27% Upside)
Action:Reiterated
Date:10/28/26
The score is driven primarily by outstanding financial strength (exceptional margins, high returns, low leverage, and solid recent cash generation) and a very constructive earnings-call outlook (raised guidance, strong second-half growth expectations, and market-share/capacity expansion). Offsetting these positives are mixed near-term technical momentum (negative MACD and a pullback below the 20-day average) and a demanding earnings multiple (P/E ~53), partially mitigated by the high dividend yield.
Positive Factors
SoC platform leadership
Advantest’s leading SoC tester share and reusable 93000 platform support durable competitive positioning across compute applications. Higher share can improve customer relevance, scale economics, and recurring service opportunities as advanced chips require more testing.
Negative Factors
Cyclical revenue volatility
Dependence on semiconductor capital spending makes revenue and earnings vulnerable to changes in customer investment and technology transitions. A strong rebound does not remove the risk that future downcycles could reduce utilization, cash generation, and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
SoC platform leadership
Advantest’s leading SoC tester share and reusable 93000 platform support durable competitive positioning across compute applications. Higher share can improve customer relevance, scale economics, and recurring service opportunities as advanced chips require more testing.
Read all positive factors
Advantest (ATEYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$149.60B
Dividend Yield0.09%
Average Volume (3M)228.17K
Price to Earnings (P/E)53.5
Beta (1Y)2.14
Revenue Growth31.38%
EPS Growth95.51%
CountryUS
Employees7,241
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)642.50
Shares Outstanding732,000,000
10 Day Avg. Volume457,908
30 Day Avg. Volume228,170
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)19.65
Price to Sales (P/S)13.13
P/FCF Ratio49.02
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.18
Enterprise Value/Ebitda0.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.91
Revenue Forecast (FY)$11.15B
Advantest Business Overview & Revenue Model
Company Description
Advantest Corporation, a Japanese entity founded in Tokyo in 1954, specializes in the development and distribution of semiconductor and component testing equipment, alongside various mechatronics solutions. Its operations are broadly categorized i...
How the Company Makes Money
Advantest primarily makes money by selling automatic test equipment (ATE) systems to semiconductor manufacturers and subcontractors that perform wafer sort and final test in high-volume production. Revenue is generated from (1) system sales of ATE...
Advantest Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q2-2026)
| Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management described very strong results, raised full-year guidance, cited robust demand across GPU, custom ASIC, and CPU testing, and outlined accelerating capacity expansion, market-share gains, and substantial ATE market opportunities. The principal challenges were higher DDR and component costs, expected margin pressure, memory scarcity, and limited disclosure on the timing of future capacity milestones.Positive Updates
Strong Results and Raised Full-Year Guidance
Management reported very strong results and raised its full-year guidance while maintaining the CY 2026 SoC tester market outlook unchanged. The company expects continued revenue increases through the second half as capacity expansion enables it to ship more systems.
Negative Updates
DDR and Component Inflation Pressuring Margins
Management said it has felt the impact of higher DDR pricing because its SoC and memory testers consume significant amounts of DDR. A meaningful part of the first-half-to-second-half operating-margin decrease is related to the step-up in component pricing, and the company expects to continue facing headwinds from DRAM prices and other component inflation.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Results and Raised Full-Year Guidance
Management reported very strong results and raised its full-year guidance while maintaining the CY 2026 SoC tester market outlook unchanged. The company expects continued revenue increases through the second half as capacity expansion enables it to ship more systems.
Read all positive updates
Company Guidance
Management said it originally targeted 10,000 systems by the end of fiscal 2028, but the ramp “has to be accelerated pretty significantly,” with “high confidence” and a time frame likely to be pinpointed “in the next quarter or so”; it expects to ship more systems in Q3 and “even higher systems than in Q4,” with Q4 memory systems “quite strong,” while currency-adjusted first-half to second-half top-line growth is expected to be “28% growth, half-over-half.” ATE TAM CAGR has been “about 50% or a little above 50%,” is not expected to slow, and customer CAGRs are “mid to high 50s all the way through 2029”; CPO testing is expected to see “a double or tripling every year for the next couple of years,” reaching “somewhere in the billion-dollar ATE market size,” versus an overall SoC market “above $11 billion” growing at a “50%+ CAGR.” SoC tester share rose from 56% in 2024 to 66% in 2025, with a path “above 70%,” the “70% threshold” expected “in the near future,” share gains expected in 2026 and 2027, and the 70% market share expected “in the end of fiscal 2026 and the beginning of the fiscal 2027, in other words, April”; annual margins are “settling in at this low 50s,” pricing is expected to remain competitive with no “material impact,” and the next production-capacity step under discussion is “another doubling from 10,000 to 20,000,” with timing not yet disclosed and possible further detail by Mid-Term Plan 4 in the May timeframe.Advantest Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25T | 1.20T | 779.71B | 486.51B | 560.19B | 416.90B |
| Gross Profit | 823.37B | 769.90B | 445.08B | 246.03B | 319.06B | 235.91B |
| EBITDA | 602.58B | 526.42B | 257.13B | 108.98B | 189.08B | 129.70B |
| Net Income | 467.39B | 397.99B | 161.18B | 62.29B | 130.40B | 87.30B |
Balance Sheet | ||||||
| Total Assets | 1.50T | 1.18T | 854.21B | 671.23B | 600.22B | 494.70B |
| Cash, Cash Equivalents and Short-Term Investments | 410.40B | 341.44B | 262.54B | 106.70B | 85.54B | 116.58B |
| Total Debt | 107.45B | 20.28B | 93.50B | 94.44B | 50.84B | 43.46B |
| Total Liabilities | 468.89B | 377.72B | 347.67B | 240.05B | 231.53B | 200.07B |
| Stockholders Equity | 1.04T | 799.18B | 506.54B | 431.18B | 368.69B | 294.62B |
Cash Flow | ||||||
| Free Cash Flow | 395.88B | 320.39B | 266.54B | 12.13B | 46.64B | 60.67B |
| Operating Cash Flow | 433.52B | 355.40B | 285.97B | 32.67B | 70.22B | 78.89B |
| Investing Cash Flow | -135.54B | -36.64B | -42.19B | -27.94B | -26.71B | -46.91B |
| Financing Cash Flow | -169.27B | -244.45B | -82.82B | 10.76B | -77.43B | -68.74B |
Advantest Technical Analysis
Positive
216.32
Price Trends
221.19
Positive
205.20
Positive
184.71
Positive
Market Momentum
-3.27
Positive
50.50
Neutral
35.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEYY, the sentiment is Positive. The current price of 216.32 is below the 20-day moving average (MA) of 234.15, below the 50-day MA of 221.19, and above the 200-day MA of 184.71, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEYY.
Advantest Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $149.60B | 53.47 | 58.91% | 0.09% | 31.38% | 95.51% | |
77 Outperform | $8.35B | 72.20 | 10.96% | ― | 18.01% | 161.14% | |
74 Outperform | $50.60B | 44.16 | 38.04% | 0.16% | 57.91% | 153.54% | |
68 Neutral | $10.51B | 79.91 | 6.50% | ― | 8.08% | -33.87% | |
63 Neutral | $2.41B | -61.34 | -4.91% | 1.11% | 32.66% | 55.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $2.09B | -278.04 | -4.66% | ― | -15.21% | -81.50% |
* Technology Sector Average
ATEYY
Advantest
225.00
98.86
78.37%
AEHR
Aehr Test Systems
63.95
38.86
154.88%
COHU
Cohu
50.98
27.50
117.12%
FORM
Formfactor
106.85
64.43
151.89%
ONTO
Onto Innovation
214.17
83.48
63.88%
TER
Teradyne
323.68
179.58
124.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.