Semiconductor-testing equipment maker Teradyne forecast second-quarter profit and revenue above Wall Street estimates on Wednesday, helped by strong demand for its chip-testing equipment.
Shares of the company rose nearly 8% in extended trading.
The growing demand for memory and networking chips driven by increased appetite for artificial intelligence applications is benefiting semiconductor-testing equipment suppliers like Teradyne.
"Strength in memory and computing is driving stronger than expected performance in the first half of the year, however visibility beyond the second quarter remains limited," said CEO Greg Smith.
The company, which supplies equipment to chip designer Qualcomm and electronics firm Samsung , said it expects second-quarter revenue in the range of $665 million to $725 million, compared with estimates of $636.6 million, according to LSEG data.
It also expects adjusted earnings per share for the second quarter in the range of 64 cents to 84 cents, compared with estimates of 60 cents.
The company's revenue for the first quarter fell around 3% to $600 million from a year ago. However, it beat analysts' expectations of $566.3 million.
On a adjusted basis, the company earned 51 cents per share in the quarter ending March 31, compared with estimates of 33 cents per share.
