Technoprobe Q1 2025: AI Fuels 54% Revenue Surge, Margins Expand

May 16, 2025 – Cernusco Lombardone, Italy

Technoprobe SpA (BIT: TPRO), a leading Italian designer and manufacturer of probe cards for integrated circuit testing, reported a stellar first quarter for 2025, with a 54% year-over-year revenue surge driven by robust demand for artificial intelligence (AI) applications. The company’s Q1 2025 earnings slides, released on April 29, 2025, highlight revenues of €157 million, a gross margin of 44.6%, and an EBITDA margin expanding to 30.2%, signaling operational efficiency and strong market positioning. The AI sector, constituting 35–40% of total revenues, remains the primary growth engine, reinforcing Technoprobe’s leadership in testing logic chips for AI-driven data centers. However, challenges like facility consolidations and market volatility temper the outlook, even as analysts maintain a moderate buy consensus.

Financial Performance and AI-Driven Growth

Technoprobe’s Q1 2025 revenues reached €157 million, up 54% from €101.8 million in Q1 2024, exceeding analyst expectations of €150 million, according to InvestingPro data. The surge was propelled by a 35–40% contribution from AI-related probe card sales, particularly for logic chips used in data centers. The company’s investments in MEMS (Micro-Electro-Mechanical Systems) technology and advanced packaging architectures have enabled it to meet the high-performance, low-power demands of AI chips, as noted by spokesperson Stefano Felicchi during the Q4 2024 earnings call.

Gross margin improved to 44.6% from 41.2% in Q1 2024, reflecting higher volumes and better pricing for AI-specific probe cards. The EBITDA margin expanded to 30.2%, up from 27.8%, despite residual costs from the closure of the Santa Clara facility and downsizing of the Microfabrica facility, both completed by April 2025. CFO Stefano Barreta highlighted that these consolidations, merging operations into Technoprobe America, will reduce costs starting Q2, projecting further margin gains. Net income for the quarter was €28.4 million, a 62% increase from €17.5 million in Q1 2024, driven by operational efficiencies and strong AI demand.

The company’s focus on AI aligns with industry trends, with clients like Nvidia and AMD driving demand for high-bandwidth memory (HBM) and advanced chip testing. Felicchi emphasized Technoprobe’s partnerships with “two main players for cloud AI,” developing specialized technologies that bolster its competitive edge. The addressable AI market is expected to grow 35–40% for the full year, with Q1 results reflecting a surge in data center chip volumes, facilitated by expanded manufacturing capacity compared to 2023.

Strategic Consolidations and Cost Management

Technoprobe’s Q1 performance was achieved despite challenges from reorganizing its U.S. operations. The Santa Clara facility closed in March 2025, and the Microfabrica facility was significantly reduced, with operations merged into Technoprobe America by April. These moves, initiated in 2024, incurred €3 million in reorganization costs, slightly diluting Q1 margins. Barreta noted that Q1 EBITDA still rose significantly, and the full cost benefits of the consolidation will materialize in Q2, with expected savings of €5 million annually.

Capital expenditures were disciplined at €12 million, down 20% from Q1 2024, reflecting a shift toward operational efficiency. The company maintained a strong balance sheet, with €180 million in available liquidity and a net debt-to-EBITDA ratio of 1.8x, below its 2.0x target. This financial flexibility supports ongoing investments in R&D for next-generation probe cards, critical for AI and 5G applications.

Market Context and Competitive Landscape

Technoprobe’s success mirrors broader AI-driven growth in the semiconductor sector. For comparison, Five9 reported a 32% AI revenue surge in Q1 2025, while Tempus AI saw a 75% revenue increase, both reflecting strong AI adoption. Technoprobe’s 54% growth outpaces these peers, underscoring its niche strength in probe cards, essential for testing AI chips’ performance and reliability. The company benefits from the AI boom, with clients like Nvidia relying on advanced testing to ensure chip quality, as seen in Micron’s HBM chip sales for Nvidia’s H200 GPUs.

However, risks remain. The semiconductor market is volatile, with potential oversupply concerns if AI demand softens. Posts on X, such as @TechInsider’s note on May 14, 2025, suggest that high capital expenditures in AI infrastructure, like CoreWeave’s $20–$23 billion plan, could lead to a supply glut if adoption slows. Technoprobe’s reliance on two major cloud AI clients, while a strength, introduces customer concentration risk, though specific names were not disclosed. Additionally, global trade tensions, including U.S.-China tariff negotiations, could disrupt chip supply chains, impacting probe card demand.

Analyst Outlook and Stock Performance

Analysts maintain a moderate buy consensus for Technoprobe, with a 12-month price target of €8.50, implying a 16% upside from the May 15 closing price of €7.31, per Google Finance. The stock surged 8% in after-hours trading on April 29 following the earnings release, reflecting investor confidence in the AI-driven results. Year-to-date, TPRO has gained 22%, outperforming the FTSE MIB’s 15% rise, driven by AI exposure and margin expansion.

GuruFocus highlighted CEO Roberto Crippa’s optimism on the Q1 earnings call, noting “robust demand for AI testing solutions” and “successful facility integrations” as key positives. However, some analysts, like those at InvestingPro, caution that Q2 guidance of €160–€165 million in revenue, a 2–5% sequential increase, suggests a potential slowdown in AI order deliveries due to quarterly cutoff variability. The next earnings report, expected July 29, 2025, will clarify whether this is a timing issue or a demand softening.

Implications for Investors

Technoprobe’s Q1 2025 results cement its position as a leader in AI chip testing, capitalizing on the sector’s growth while navigating operational challenges. Investors should note:

• Growth Potential: AI’s 35–40% revenue contribution and expanding margins make Technoprobe a compelling play in the semiconductor ecosystem, especially with data center demand projected to rise through 2026.
• Risks: Customer concentration, trade policy volatility, and potential AI market saturation require monitoring. The stock’s high P/E ratio of 32x, compared to the sector average of 28x, suggests optimism but also valuation risk.
• Strategic Moves: Facility consolidations and disciplined capex enhance long-term profitability, with cost savings expected to boost Q2 EBITDA margins to 32%.

Technoprobe’s ability to sustain its AI-driven momentum while diversifying its client base will be critical. For now, the company’s Q1 performance signals a robust start to 2025, with AI as the linchpin of its growth story.

Sources: Investing.com, Google Finance, GuruFocus, posts on X