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Teradyne's AI Integration Accelerates Growth in Test Business
ByAinvest
Tuesday, Sep 16, 2025 1:45 pm ET2min read
Teradyne (TER) is leveraging AI to drive growth in the semiconductor sector, with the test business poised for significant growth. The company is focusing on faster-growing segments despite weakness in Europe and pursuing opportunities in advanced robotics. As a leading provider of automated test equipment and advanced robotics systems, Teradyne is well-positioned to capitalize on secular growth in these areas.
Teradyne (TER) is leveraging artificial intelligence (AI) to drive growth in the semiconductor sector, with the test business poised for significant expansion. The company is focusing on faster-growing segments despite weakness in Europe and pursuing opportunities in advanced robotics. As a leading provider of automated test equipment and advanced robotics systems, Teradyne is well-positioned to capitalize on secular growth in these areas.Teradyne's stock ended the recent trading session at $114.07, demonstrating a +1.63% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.47% [1]. Over the previous month, shares of the maker of wireless products, data storage, and equipment to test semiconductors witnessed a gain of 2.58%, trailing the performance of the Computer and Technology sector with its gain of 3.88% [1].
Analysts and investors alike will be keeping a close eye on Teradyne's upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.78, marking a 13.33% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $744.48 million, up 0.97% from the year-ago period [1]. For the full year, the Zacks Consensus Estimates project earnings of $3.13 per share and a revenue of $2.89 billion, demonstrating changes of -2.8% and +2.61%, respectively, from the preceding year [1].
In the context of valuation, Teradyne is currently trading with a Forward P/E ratio of 35.85, representing a premium compared to its industry average Forward P/E of 20.25 [1]. Additionally, the company has a PEG ratio of 2.36, which is higher than the industry average of 1.88 [1].
Teradyne's recent performance has drawn attention from institutional investors. UniSuper Management Pty Ltd boosted its position in shares of Teradyne by 12.7% in the first quarter, according to the company's most recent Form 13F filing with the SEC [2]. Other hedge funds, such as Snowden Capital Advisors LLC and HighTower Advisors LLC, also increased their positions in Teradyne during the fourth and first quarters, respectively [2].
Teradyne's CEO, Gregory Stephen Smith, sold 554 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $106.00, for a total value of $58,724.00. Following the completion of the transaction, Smith directly owned 96,993 shares in the company, valued at $10,281,258 [2]. This represents a 0.57% decrease in their position.
Teradyne has set its Q3 2025 guidance at 0.690-0.870 EPS. Equities analysts forecast that Teradyne, Inc. will post 3.88 earnings per share for the current fiscal year. The firm also recently declared a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Friday, September 5th will be paid a $0.12 dividend, representing a $0.48 annualized dividend and a yield of 0.4% [2].
Wall Street analysts have provided mixed ratings for Teradyne. Stifel Nicolaus, UBS Group, and JPMorgan Chase & Co. have set price objectives ranging from $85.00 to $130.00, with ratings of "hold," "buy," and "neutral," respectively [2]. Wall Street Zen raised Teradyne from a "sell" rating to a "hold" rating in a report on Monday, September 1st [2].
Teradyne's focus on AI-driven solutions and advanced robotics positions it well for future growth, despite current market challenges. The company's strategic initiatives and strong analyst support suggest a promising outlook for investors.
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