Nova tops $250 million in quarterly revenue for the first time as AI chip boom continues
The semiconductor equipment maker posted record sales and forecast another quarter of growth as demand from leading chipmakers remains strong.
Nova continues to benefit from the surge in semiconductor investment driven by the AI boom, with its stock climbing 55% over the past year and pushing the company's market value to nearly $13 billion.
The Israeli maker of metrology equipment for the semiconductor industry reported record second-quarter results, with revenue reaching $255 million, up 8% from the previous quarter and 16% year over year. It marks the first time the company has generated more than $250 million in quarterly revenue.
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A silicon wafer enters a Nova measuring machine in the chip manufacturing process
(Yoram Sharf)
GAAP net income rose to $75 million, or $2.20 per diluted share, up 8% sequentially and 3% from the same quarter last year. On a non-GAAP basis, net income increased to $86.5 million, or $2.51 per diluted share, representing 14% year-over-year growth.
Despite the record revenue, profitability softened slightly. Gross margin declined to 56.5%, compared with 57.7% in the first quarter and 57.8% a year earlier, while operating expenses increased to $68 million, up from $64.9 million in the previous quarter.
Nova expects the momentum to continue in the third quarter, forecasting revenue of $277 million to $287 million and adjusted earnings per share of $2.70 to $2.85.
CEO Gabi Weissman said the results reflect the strong execution of Nova's long-term strategy. He attributed the performance to an expanding customer base, growing market share, and deeper engagement with leading semiconductor manufacturers, factors he said provide the company with greater visibility for the coming quarters.
