Barclays backs Technoprobe on surging demand for AI chip testing

What happened: Barclays started coverage of Italian chip-testing equipment maker Technoprobe (BIT:TPRO) with an overweight rating and a €40 price target, citing its close to 100% share of probe cards used to test AI graphics chips. Key numbers: €40 price target. Why it matters: Barclays expects more complex AI chips to need longer and more frequent testing, so probe-card demand should grow faster than chip volumes. It flags rival FormFactor, now qualified for AI graphics chips, as a risk and assumes Technoprobe's share falls to about 85% by 2028.

Barclays started coverage of Italian chip-testing equipment maker Technoprobe (BIT:TPRO) with an overweight rating and a €40 price target, citing its close to 100% share of probe cards used to test AI graphics chips.

Barclays expects more complex AI chips to need longer and more frequent testing, so probe-card demand should grow faster than chip volumes. It flags rival FormFactor, now qualified for AI graphics chips, as a risk and assumes Technoprobe's share falls to about 85% by 2028.