Quality Momentum

QM · rank #11 · 2026-09-04

TER

NASDAQ · $52.94B (USD)

SignalBuy3.0strength 3.0 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+265.09%
ROE TTM
Return on equity, trailing 12 months.
+36.5%
Profit margin
Net profit margin, trailing 12 months.
+25.8%
Market cap (USD)
Size filter: > $500M required.
$52.94B
Anchor (recent)
Close on 2026-08-05
$389.39
Anchor (far)
Close on 2025-08-05
$106.66

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 semiconductor automated test equipment maker generating ~84% of Q2 2026 revenue from semiconductor test, with AI chip and infrastructure testing now representing over 60% of total sales.

Rationale

The quality_momentum signal is strongly reinforced by back-to-back record quarters, ROE of 36%, 26% profit margins, and revenue roughly doubling YoY as AI capex drives a structural step-up in advanced SoC and memory test demand.

Material risks

  • 1Revenue visibility is explicitly cycle-dependent with no highlighted long-term backlog, meaning a pause or retrenchment in AI semiconductor capex by hyperscalers or leading chip makers would rapidly collapse the order book that is driving this momentum.
  • 2Export control tightening on advanced AI chip manufacturing or testing into key Asian markets could directly restrict Teradyne's addressable customer base at the peak of the cycle.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed