BN · rank #14 · 2026-09-08
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 U.S. supplier of automated semiconductor test equipment, generating ~84% of revenue from Semiconductor Test with AI-related demand now comprising 60–70% of sales across hyperscaler and advanced chiplet customers.
Rationale
TER screens as a structural bottleneck-solver because its UltraFLEXplus platform and TEL-integrated test cell hold a defensible duopoly position in testing complex 2.5D/3D AI packages, with consecutive record quarters, 100%+ YoY revenue growth, and hyperscaler spec-in creating switching-cost moats that validate the signal rather than mere sentiment rotation.
Material risks
- 1Revenue concentration of 60–70% in AI semiconductor test creates acute cyclicality exposure — any capex pause by hyperscalers (Amazon, Meta) or a technology inflection toward in-house test capability at a major customer would directly collapse the demand thesis.
- 2Institutional 13F median change of -1.85% signals smart-money trimming into strength, and with the stock up sharply on AI euphoria, a guidance miss or even a Q3 beat-and-lower scenario could trigger a violent de-rating given elevated expectations already embedded in consensus.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.