Nvidia Corp. Stock (NVDA, Financial) fell more than 3% on Friday As investors worried about growing competition from Japan Semiconductor companies; The most forward has renewed its leadership in chip testing equipment. With advances in generative AI demand, the global market is now dominated by Adventest, where US rival Teradyne (Dull, Financial) commands about 50%, according to sources.
Revenue from SOC’s testing tools is expected to climb 32% to JPY 324 billion ($2.1 billion) by March 2025, the company says. For such advanced AI chip processes like chiplets and 3D packaging, highly precise and efficient tools are essential for improving yields.
Advantest’s FY2024 R&D investments reached JPY 65.5 billion ($424.5 million), illustrating the importance Adventest places on innovation. Much greater profitability has been made possible due to its R&D efficiency.
Advantest CEO Douglas Lefever, seeing continued strong growth in demand for AI chips, sees the technology as a positive for the industry. As Nvidia falls, it speaks to the changing market dynamics around evolving semiconductor technologies.
This article first appeared on Gurufocus.