BN · rank #8 · 2026-07-20
TER
NASDAQ · $50.46B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.62 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +23.5% |
| Forward net margin Consensus forward net margin. | +24.6% |
| Net margin TTM Trailing twelve month net margin. | +22.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +2.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.28 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.15× |
| Analyst upside Spread between the consensus 12m target and the current price. | +32.3% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $50.46B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Teradyne is the dominant supplier of automated test equipment for advanced semiconductors, with ~70% of Q1 2026 revenue tied directly to AI-related compute testing across its $1.282B record quarter.
Rationale
TER fits the bottleneck_solvers thesis precisely — high-end ATE is a literal production gating constraint for AI chip ramp, and management's evergreen model targeting $6B revenue at 59–61% gross margin signals structural demand rather than a cyclical sentiment trade.
Material risks
- 1Customer concentration in Qualcomm and Texas Instruments creates in-sourcing risk — if major fabless customers vertically integrate test capability, TER loses sole-supplier leverage at its highest-margin accounts.
- 2Export controls on advanced semiconductor equipment into China could abruptly shrink the addressable market for TER's highest-complexity test platforms, compressing the $12–$14B ATE TAM management is underwriting its evergreen model against.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.