Advantest Corp., a Japan-based key player in the chip industry , raised its full-year profit forecast by nearly 40%, driven by increased spending on AI.

The company sells chip-testing equipment, which has seen strong demand due to AI investments powering semiconductor sales from companies like Nvidia and AMD.

Despite the hype surrounding DeepSeek’s recent debut, Advantest’s CEO, Douglas Lefever, downplayed any impact on the company’s outlook.

Advantest expects the demand for AI chips, particularly for applications like robotics and consumer devices, to continue growing.

Its forecasted operating profit for the year has been increased to 226 billion yen (around US$1.5 billion), exceeding analyst predictions.

The company is confident that the rising number of AI entrants will further drive demand.