April 24 (Reuters) - Semiconductor-testing equipment

maker Teradyne ( TER ) 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 ( TER ).

"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 ( QCOM ) 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.