Teradyne is the purest large-cap lever on the AI test-intensity cycle: every advanced GPU, HBM stack and custom ASIC needs more — and more complex — testing, and Teradyne owns that toll booth. EPS has accelerated violently from $0.57 to $2.56 across four straight beats, with revenue up +87% YoY in Q1 2026 and AI now ~70% of sales Yahoo Finance· avr 2026. The stock is now severely extended (+12.4% above its EMA20) and high-beta — it requires a disciplined pullback entry.
Teradyne designs and sells the automated test equipment (ATE) that semiconductor makers use to validate chips before they ship. Its Semiconductor Test segment — the engine — crossed $1B in a single quarter for the first time, split between System-on-Chip ($882M) and Memory ($203M), the latter riding HBM and DRAM demand on the newly-ramped Magnum 7 tester Kalkine· avr 2026.
Two adjacencies round out the model: Product Test (~$80M) and a Robotics arm — Universal Robots and Mobile Industrial Robots — that just posted its fourth consecutive quarter of sequential growth (~$91M). The investment thesis is a toll-booth one: as AI accelerators, custom ASICs and stacked HBM grow more complex, test intensity (test cost per device) rises structurally, and Teradyne captures that with a high-margin razor-and-blade installed base. Management reiterated a long-term model of $6B revenue and $9.50–$11.00 EPS Yahoo Finance· avr 2026.
| Metric | Value | Signal |
|---|---|---|
| Revenue (TTM) | $3.79B | Q1 +87% YoY |
| EBITDA | $1.16B | 30.7% margin |
| Gross Margin | 58.7% | Strong |
| Operating Margin | 37.6% | Excellent |
| Net Margin | 22.6% | Healthy |
| ROE | 28.8% | High |
| Cash | $245.6M | Net cash |
| Debt | $82.4M | Debt/MCap 0.12% |
| Fwd P/E | 46.2x | PEG 1.73 |
| EV/EBITDA (TTM) | 58.9x | Growth premium |
| Analyst Target | $374.82 | Buy consensus |
| RSI (14) | 61.7 |
| EMA 20 | $267.02 |
| EMA 50 | $366.82 |
| EMA 200 | $267.02 |
| MACD | 15.300 |
| Signal | 10.420 |
| ATR (14) | $28.61 |
Textbook bull stack: EMA20 ($389.44) > EMA50 ($366.82) > EMA200 ($267.02), all rising, with price near the 52-week high ($440.75) Finviz· live. MACD (15.30) is above signal (10.42) and RSI 61.7 sits in a healthy, non-overbought momentum zone. At publication ($403.20) the stock was already ~8% above its EMA20; at the current $437.92, extension is +12.4% and ATR remains a wide $28.61 (~6.5%), making a chase entry poor risk. The original $398-$402 entry zone is now stale — a pullback toward $400-$410 is needed before this becomes actionable again.
High-quality leader with clean balance sheet, but now severely overextended (+12.4% above EMA20) and near its 52W high ($440.75). At $437.92, R/R is 0.15 — effectively unactionable. The fundamental risk remains low; the timing/extension/valuation risk is now extreme Finviz· live.
Teradyne's business risk is low — it is a profitable, net-cash, structurally-advantaged leader with zero dilution. What pushes the gauge to 7/10 is the extreme extension since publication: the stock has rallied +8.7% to $437.92, now +12.4% above EMA20 and near its 52W high ($440.75). R/R at spot is 0.15 — TP1 ($448) is only $10 above while the stop ($372) sits $66 below. With fwd PE 46.2x (PEG 1.73) and analyst targets well below spot, chasing here is asymmetrically bad. Wait for a pullback toward $400-$410.
Teradyne is the toll booth on AI test intensity, compounding earnings at a violent clip ($0.57 → $2.56 across four straight beats) with a clean, net-cash balance sheet. The fundamental thesis remains strong, but the entry price has moved against us — at $437.92 it is severely overextended, and with the June 22 Nasdaq-100 inclusion now imminent, the easy bid may already be priced in. The original $398-$402 entry zone, with a stop at $372 (below the then-EMA20, now at $389) and a measured-move target at $448, delivered R/R 1.71 at the $400 midpoint. At current levels, the trade is stale and requires a pullback to become actionable again.
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Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Always conduct your own research and consult a licensed financial advisor before making investment decisions.
Data sourced from DailyTickers Gateway, Yahoo Finance, SEC EDGAR, and public market data. Accuracy is not guaranteed.