TER
Teradyne, Inc. Y
Valuation
Opportunity Score
W-IP Moat: W-IP
S-P7 Stack: S-P7
G-OPERATOR Governance: G-OPERATOR
M3 Methodology: M3
H-FORTRESS Fortress Balance Sheet
H-CANNIBAL Share Cannibal
W-SCALE Economies of Scale
V-WIDE-MOAT Wide Moat
V-ACCELERATING Growth Acceleration Rev +2.0%
S-SHOCK-UPSTREAM Multipolar Supply Chain Risk (MR-MULTIPOLAR)
Overview
Teradyne designs and manufactures automated test equipment for semiconductors, circuit boards, and wireless modules. The company also operates an industrial automation segment focused on collaborative and autonomous mobile robotics.
Investment Thesis
Although the stock trades at a 16.4% premium to the analyst mean target of $315.76, Teradyne's 43.9% year-over-year revenue expansion reflects an aggressive shift in semiconductor testing requirements. The transition to complex chip architectures has driven a 40.8% sequential revenue increase, placing the firm in a critical hardware role within the AI infrastructure stack. However, net insider sales of $1.84 million and a projected deceleration in EPS growth from 58.1% this year to 31.9% next year suggest that the current price of $367.67 may be discounting a normalization of the current cycle.
🕵️ Insider Radar
| Date | Insider | Type | Value |
|---|---|---|---|
| 2026-04-09 | Sell | 5.5K | |
| 2026-04-07 | Sell | 195.1K | |
| 2026-04-03 | Sell | 73.3K | |
| 2026-03-06 | Sell | 187K | |
| 2026-02-27 | Sell | 262.3K |
🔭 Quarterly Summary
Teradyne (TER) delivered a robust performance with revenue growing 43.9% YoY and 40.8% sequentially, signaling a sharp recovery in semiconductor test demand. Gross margins remained healthy at 57.2%, while the company maintained a 14.1% FCF margin. Management commentary highlights a transition into a high-growth phase (AI-B position) driven by complex semiconductor architectures requiring advanced testing solutions, particularly in the S-P7 stack position.