BN · rank #15 · 2026-09-04
TER
NASDAQ · $52.94B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.34 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +21.8% |
| Forward net margin Consensus forward net margin. | +27.1% |
| Net margin TTM Trailing twelve month net margin. | +25.8% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.3% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.61 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.13× |
| Analyst upside Spread between the consensus 12m target and the current price. | +31.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $52.94B |
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 global duopolist in semiconductor automated test equipment, now generating >60% of revenue from AI compute and high-bandwidth memory test workloads following record Q2 2026 results of $1.33B revenue with ~60% gross margins.
Rationale
TER is a genuine structural bottleneck-solver — every advanced AI chip (HBM, 2.5D/3D chiplets, silicon photonics) must pass through its UltraFLEXplus systems before deployment, and the TEL partnership for integrated AI/data-center test cells deepens its sole-source position at the most complex packaging nodes.
Material risks
- 1Revenue concentration risk is acute — with >60% of sales tied to a handful of hyperscaler-driven AI chip programs, any pause in NVIDIA/AMD/HBM capex cycles (as seen in 2023) could cause violent demand air pockets with no backlog buffer to smooth earnings.
- 2Advantest is aggressively closing the gap in HBM and SoC test, and if a major OSAT or foundry customer (e.g., TSMC, Samsung) standardizes on Advantest platforms for next-generation chiplet test, TER's market share concentration becomes a liability rather than a moat.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.