Teradyne shares surge 5.10% premarket after Zacks upgrades to Strong Buy on rising earnings estimates.

Teradyne surged 5.10% in premarket trading following two key developments: a Zacks Investment Research upgrade to a "Strong Buy" rating and the company's expansion into AI test demand with a new data center venture. The Zacks upgrade cited improved earnings estimates, signaling investor optimism about Teradyne's growth trajectory. Simultaneously, the announcement of a data center initiative targeting AI testing highlighted the firm's strategic pivot toward high-demand sectors, reinforcing its positioning in semiconductor and automation markets. While a valuation analysis from Simply Wall St suggested the stock was overvalued, the immediate price reaction appears driven by the Zacks rating and AI-related momentum rather than fundamental valuation metrics. Cathie Wood's sale of Teradyne shares was not cited as a primary factor in the upward movement.