BN · rank #5 · 2026-07-27
TER
NASDAQ · $54.78B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.74 |
|---|---|
| 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. | 1.38 |
| 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. | +22.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $54.78B |
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 a leading provider of automated test equipment (ATE) for semiconductors, electronics, and industrial automation, now heavily exposed to AI chip and advanced packaging demand.
Rationale
TER is a structural bottleneck-solver in AI infrastructure: known-good-die screening and chiplet packaging validation are non-negotiable steps that cannot be skipped as HBM and co-packaged optics scale, and the TEL partnership plus Photon 100/UltraFLEXplus launches confirm TER is deepening its sole-source position at exactly these chokepoints.
Material risks
- 1Customer concentration in AI-driven semis (≈70% of sales) means any capex pause or inventory correction at NVIDIA/TSMC/HBM suppliers would compress TER's revenue sharply, and Q1's 87% YoY growth sets a punishing comparison base heading into 2027.
- 2Earnings are reported 1 day after the as-of date (2026-07-28), creating binary event risk — Q2 guidance of $1.15–$1.25B implies sequential deceleration, and any miss or cautious H2 commentary could gap the stock down before a position is established.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.