BN · rank #12 · 2026-09-09
TER
NASDAQ · $58.17B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.29 |
|---|---|
| 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. | 0.65 |
| 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. | +20.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $58.17B |
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/data center chips now representing 60–70% of sales and driving consecutive record quarters in H1 2026.
Rationale
TER screens as a structural bottleneck-solver because complex 2.5D/3D AI chiplet packages require its UltraFLEXplus platform and TEL-integrated test cell in a high-barrier duopoly with Advantest, with hyperscalers like Amazon and Meta directly specifying its equipment — a moat grounded in software lock-in and throughput economics, not sentiment rotation.
Material risks
- 1Revenue concentration of 60–70% in AI-related test creates acute cyclicality exposure if hyperscaler capex pauses or a technology inflection (e.g., optical interconnects or in-package self-test) reduces external test intensity, which would collapse the demand signal that is driving the entire thesis.
- 2Institutional 13F median change of -1.85% signals smart-money trimming despite strong fundamentals, and customer concentration in Asia's OSAT/IDM supply chain (Samsung, Qualcomm) means a single large program delay or geopolitical disruption could cause a sharp revenue air pocket.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.