BN · rank #6 · 2026-07-23
TER
NASDAQ · $52.25B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.71 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +23.3% |
| Forward net margin Consensus forward net margin. | +25.7% |
| Net margin TTM Trailing twelve month net margin. | +22.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +3.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.48 |
| 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. | +16.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $52.25B |
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 chip validation demand.
Rationale
Record Q1 2026 revenue of $1.282B (+87% YoY), a 20.75% EPS beat, management's evergreen ATE TAM model of $12–$14B, and 60.9% gross margins confirm TER is a structural bottleneck in AI chip production ramp, not a sentiment rotation.
Material risks
- 1Customer concentration in Qualcomm and Texas Instruments creates binary risk if either accelerates in-house test capability, directly undermining the sole-supplier bottleneck thesis.
- 2Q2 2026 earnings report on July 28 (5 days post as-of-date) introduces near-term binary event risk, with guidance of $1.15–$1.25B implying sequential deceleration from Q1's record that could reset sentiment.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.