BN · rank #15 · 2026-09-07
TER
NASDAQ · $55.82B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.31 |
|---|---|
| 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. | 0.62 |
| 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. | +25.1% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $55.82B |
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 screens as a genuine bottleneck-solver because advanced AI chiplet packaging (2.5D/3D), HBM, and silicon photonics require increasingly complex, high-current test infrastructure that only Teradyne and Advantest can supply at scale, creating durable structural demand rather than sentiment-driven rotation.
Material risks
- 1Customer concentration in AI hyperscaler supply chains means a single large fabless customer (e.g., NVIDIA or a major OSAT) building or co-developing proprietary test capability in-house would directly erode Teradyne's sole-source positioning in the highest-margin SoC segment.
- 2Institutional 13F median change of -1.85% signals smart-money trimming despite strong fundamentals, which alongside no disclosed long-term contract backlog creates near-term multiple compression risk if AI capex sentiment reverses before the next earnings catalyst.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.