BN · rank #19 · 2026-09-10
TER
NASDAQ · $59.99B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.26 |
|---|---|
| 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. | 0.68 |
| 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. | +16.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | +21% |
| Market cap (USD) | $59.99B |
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 global duopoly leader in automated semiconductor test equipment, generating ~84% of revenue from Semiconductor Test with dominant share in AI/chiplet 2.5D-3D package testing via its UltraFLEXplus platform and Tokyo Electron integrated test cell partnership.
Rationale
TER screens validly as a bottleneck-solver because hyperscaler-specified test platforms, deep software lock-in, and a two-player market structure create genuine structural scarcity at the AI silicon qualification chokepoint, confirmed by consecutive record quarters with AI demand driving 60-70% of sales and 100%+ YoY revenue growth.
Material risks
- 1Revenue concentration in AI-related test (~60-70% of sales) means any demand pause from hyperscalers—whether from capex digestion, architectural shifts to optical interconnects, or in-house test capability development at a Samsung or Amazon—could cause sharp cyclical drawdowns that invalidate near-term earnings visibility.
- 2Institutional 13F median change of -1.85% signals smart money trimming into strength, and with fwd PEG of 0.68 already pricing in robust growth, any Q3/Q4 guidance miss or AI capex deceleration narrative could compress multiples faster than earnings can offset.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.